The dilapidated former Kuranda Resort and Spa could soon be revitalised under new ownership

A buyer could soon be found for a once-beautiful but now derelict north Queensland resort after its majority owner was put into liquidation this week.

Kuranda Resort and Spa in its heyday.

There’s renewed hope that a white-knight will swoop in to acquire a once-beautiful resort outside Cairns that has sadly fallen into disrepair.

An overseas buyer has been in fruitless talks with the majority stakeholder of the dilapidated Kuranda Resort and Spa for the past 18 months.

But this week the Mareeba Shire Council won court orders to have a liquidator appointed over two companies which owned 41 strata-titled lots, or about 70 per cent of the property filled with small bungalows.

The foreign investor, as well as other potential buyers, are now expected to deal directly with the liquidator, Brendan Nixon, from SM Solvency in Brisbane.

Kuranda Resort and Spa in its heyday.

While the site still has a few full-time residents, it has long ceased to operate as a holiday destination and is now largely populated by squatters and the homeless.

The derelict state of the property has become an embarrassment for locals, who have demanded that action be taken to clean up what they consider an eyesore.

It first opened for business about 20 years ago but started heading downhill in 2015.

The council took legal action after Graham Hughes, the sole director and owner of the two collapsed entities, Adventure Management Pty Ltd and Followcastle Pty Ltd, failed to pay about $300,000 in rates over several years. He lodged no defence in the court case.

His now-defunct companies also owed more than $1.5m in unpaid body corporate levies, part of the reason three separate administrators have been appointed over the principal resort scheme since 2012.

One of the bungalows at the Kuranda Resort and Spa

Mr Nixon revealed that Mr Hughes personally mortgaged 11 of the properties in June this year, an action that will now come under scrutiny.

“We’ll look at related-party secured debt, which would include those mortgages,’’ he said.

“We’ll do an equity assessment on the properties and, for the unencumbered, we’ll likely sell. In the event that rates and levies exceed the value, then we’ll need to do a deal with the body corporate and the council.’’

A Council spokeswoman welcomed Mr Nixon’s appointment and expressed hope that the rates could now be recovered.

“Mareeba Shire Council will await the outcome of the liquidator’s work and will continue to seek to address the building compliance issues which exist at the site,’’ she said.

Mr Hughes, who lived on the resort property until about a year ago, did not respond to a request for comment. His Cairns-based lawyer declined to comment.

Records showed he pocketed $2.25m from the March sale of his historic home in the Brisbane suburb of Hamilton. He more than doubled his money after owning the dwelling for 16 years.