ISLAND RESORT DREAM
Focus stays on tourism plans despite setbacks
TROUBLED fund manager Mayfair 101 Group says a redevelopment of Dunk Island resort remains a high priority despite one of its funds falling into receivership.
Mayfair announced its purchase of the former Dunk Island resort last year as well as plans to invest $1.6 billion in Mission Beach.
But the emergence of the COVID-19 pandemic and receivers last week swooping on one of its funds prompted a group restructure.
The group has settled on the purchase of 130 homes in the Mission Beach area with other property settlements suspended last month.
It is also embroiled in legal action with corporate regulator ASIC, which claims some of the group’s advertising is misleading and deceptive.
In a statement yesterday, Mayfair said the group was undertaking a restructure with top-tier advisers.
“The recent appointment of receivers by the IPO Wealth Fund’s trustee, Vasco Trustees Limited, does not directly impact the group’s assets in Mission Beach, which are not subject to the receivership process,” the statement said.
“The group is working with the receivers to provide the required information to assist with their process, and is developing a plan to ensure value is maximised for investors in the IPO Wealth Fund.”
The statement said the group would be in a position to resume property settlements in Mission Beach when the restructure was complete, which was expected to occur “in a similar time frame” to COVID-19 restrictions easing and financial market conditions improving.
“The Mayfair 101 Group’s investment in Mission Beach and Dunk Island continues to be an investment of national importance and one that aligns with the Government’s objectives to grow local tourism,” the statement said.
“The project will deliver over 10,000 jobs for Far North Queensland and provide the country with a … vibrant tourism destination.”
Mayfair is redeveloping a bar on Dunk Island’s popular sand spit.
The island’s resort was flattened by Cyclone Yasi in 2011 and has not reopened since.
Mayfair said the Dunk Island Spit Bar works were being led by its property investment arm Mayfair Iconic Properties and that concrete works started on Monday.
“This exciting and landmark development will provide an iconic location on Dunk Island for the region’s many expected visitors and locals to enjoy,” the firm said.
Mayfair 101 wants to position Mission Beach as a tourism mecca and for Dunk Island to become one of the most sought-after island destinations in the Asia-pacific. The plan centres on a redevelopment of the island’s resort and upgrades to tourism infrastructure on the mainland.
The island’s spit bar is due to open in October.