$50 million Great Keppel Island sale in doubt
The $50 million-plus sale of Great Keppel Island on Queensland’s Great Barrier Reef is in doubt with the transaction yet to settle despite a deal being struck almost a year ago.
Wei Chao Pty Ltd, directed by Wan Long Wei and Pauline Wei from Taiwan, had exchanged contracts to buy almost 1000 hectares of the 1308 hectare island from property tycoon Terry Agnew’s Tower Holdings in a leasehold deal brokered by JLL and Knight Frank, The Australian Financial Review reported last year.
However, whilst further up the Queensland coast, Peter Bond recently sold Dunk Island to British investment group Mayfair for $31.5 million, doubts about the Great Keppel Island sale proceeding have persisted for months.
Title deeds show the leasehold to the island is still held by Tower Holdings.
Co-selling agent Tom Gibson from JLL Hotels & Hospitality confirmed settlement had been delayed, but maintained the Taiwanese deal was “still in play”.
“It’s taking time, but we are getting closer though,” Mr Gibson said.
Mr Agnew did not respond to a request for comment.
A spokesman for the Queensland State Government, which has to approve any change in leasehold ownership, also failed to comment, despite having earlier indicated he would.
Others close to the deal said there was little chance of it proceeding.
“The sale never got to escrow and is still available for purchase from Tower Holding,” said a Queensland developer.
Tower Holdings put the former resort site up for sale in May last year after securing approvals for a $400 million luxury casino resort.
Mr Agnew had hoped to sell the resort site for about $25 million, having secured the Queensland government’s commitment to deliver power and water infrastructure to the island and after the start of demolition of the old resort buildings.
The Asian buyers then agreed to buy not only the resort site but also a much larger adjoining portion, with a golf course and villas on it.
Little is known about the proposed new owners of the island, apart from having access to a substantial pool of money. As part of securing Great Keppel, the buyers had to prove they had the funds to develop the proposed $400 million resort which will include a 250-room hotel and 250-berth marina.
The lengthy delay in settlement casts doubt over earlier claims that the buyers’ bank statements showed funds of more than $700 million.
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