Transfer of GKI leases to Altum Property Group ‘will not occur’

Resources Minister Scott Stewart said that the Sunshine Coast property developer “does not have” and “has not secured” enough money.

Great Keppel Island.

The transfer of Great Keppel Island leases from Tower Holdings to Altum Property Group “will not occur”, according to Resources Minister Scott Stewart, but Altum says it will continue to work with the State Government to develop the island.

Mr Stewart said that an assessment completed by accounting firm Deloitte determined the Sunshine Coast property developer “does not have” and “has not secured” enough money for its proposed resort.

“Altum Properties was seeking to take over the leases of Great Keppel Island from current lessee Tower Holdings,” he said.

“As part of this process, an independent financial and managerial capability assessment of Altum Properties was conducted by Deloitte.

“This found that the company does not have, nor has it secured the financial capability to deliver the proposed development.

“For this reason the lease transfer to Altum will not occur.”

A Deloitte report completed in June 2020 came to a similar conclusion about Altum’s finances.

“This government remains committed to seeing development on Great Keppel Island which is why we have already committed $30 million for the development of common-user infrastructure on the island,” Mr Stewart said.

About $4 million of that $30 million has been spent on the island so far.

Mr Stewart did not say whether the government’s plans for the island remained unchanged from an announcement made in August last year, and he did not comment on the prospect of another private company building on GKI in the future.

Altum said it was “continuing to work with the Qld Government on the shared commitment to developing the tourism potential of GKI and we have high level meetings this week”.