Fund linked to billion dollar Dunk Island development goes under

The $1.6 billion redevelopment of Dunk Island is under a cloud after a trustees in charge of key fund linked to the project owners was placed in administration.

The $1.6 billion redevelopment of Dunk Island by investment firm Mayfair 101 is under a cloud after companies in charge of a key fund linked to the project proponents were placed in receivership.

Receivers Nicholas Giasoumi and Hamish Mackinnon, of Dye and Co, have been appointed to IPO Wealth Fund Holdings and 17 related entities, whose director is Mayfair 101 founder James Mawhinney. The move could stymie the group’s plan for the revamp of the island resort and nearby Mission Beach.

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Mr Giasoumi said the IPO Wealth Fund entities were separate from the Dunk Island project and investigations were continuing into what the companies owned and owed.

Mayfair 101 purchased the cyclone-ravaged island resort for $31 million last September and lined up contracts on more than $150 million worth of property on the adjacent mainland Mission Beach, etching out a plan to turn the strip into Queensland’s next tourism mecca.

Big plans for Dunk Island

It plans included a golf course, three resorts on Dunk Island and another on the mainland, and renovating a nearby airstrip to become an international airport.

Mr Mawhinney said Mayfair 101 Group’s investment in Dunk Island and Mission Beach remained a high priority as the group undertook a restructure with top-tier advisers.

Mr Mawhinney said the recent appointment of receivers by the IPO Wealth Fund’s trustee did not directly impact the group’s assets in Mission Beach, which are not subject to the receivership process.

“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,” he said.

He said the group’s investment in Mission Beach and Dunk Island continuedto be an investment of national importance and one that aligns with the Government’s objectives to grow local tourism.

“The project will deliver over 10,000 jobs for Far North Queensland and provide the country with a highly sought-after, vibrant tourism destination,” Mr Mawhinney said.

James Mawhinney, a 35-year-old West Australian businessman who is listed as the sole director of IPO Wealth Holdings, launched Mayfair 101 in 2009 and with offices in London, Melbourne and Sydney claims to have overseen more than $5 billion in property development

In April, Mayfair 101 launched a fixed income property bond for Australian investors to help fund projects.

However, the Australian Securities and Investments Commission’s (ASIC) started legal action against the Mayfair 101 Group in relation to it investment schemes sparking concerns that the much-anticipated redevelopment of Dunk Island and Mission Beach could be delayed or halted.

James Mawhinney on Dunk Island

Last month, the Federal court restrained Mayfair 101 and Mayfair Platinum from promoting debenture products and using prohibited phrases in advertising

On 16 April, the court also made interim orders restraining Mayfair Wealth Partners Pty Ltd and Online Investments Pty Ltd from promoting their debenture products and prohibiting the use of specific words and phrases in their advertising.

Mayfair 101 rejected claims made by ASIC in the Federal Court that Mayfair 101 Group entities had engaged in misleading or deceptive conduct with respect to products offered to wholesale investors. The Mayfair 101 Group stated it would vigorously defend the proceedings.