Date strip Benny Wu’s Double Island lease unclear

A Queensland judge made has made a damning assessment of the state of Double Island – but the state government won’t reveal next steps in push to strip Fortune Island Holdings of the lease.

Run down old bungalows on Double Island. Picture: Supplied

The state government will only consider whether Benny Wu’s Fortune Island Holdings should be stripped of the lease for Double Island, in the wake of a Queensland Land Court ruling clearing the way for the government to act.

Land Court Judge Peta Stilgoe ruled on May 7 that Fortune was in breach of the lease conditions and it could be forfeited.

Benny Wu, right, argued he should not have to forfeit the lease of Double Island because a kayak tour was operating their so it met the criteria of tourism purposes, but Land Court Judge Peta Stilgoe did not agree.

But Resources Minister Scott Stewart was coy about what the next steps would be.

He would not say when the government would act or how the Double Island lease would be marketed.

“As a government we have always said we want to see Double Island open and available to use, which is why this action was taken,” Mr Stewart said.

“The decision made by the Land Court is the final step to allow the Department of Resources’ to consider whether the lease should be forfeited.

Double Island lessee Benny Wu failed to meet a March 31, 2023, deadline to have day use facilities for the public open and for the resort to be operational. Picture: Supplied

“We will continue to keep the community updated on the process,” he said.

Mr Wu’s lawyers argued Judge Stilgoe had the discretion not to declare the lease may be forfeited but she said that was outside the scope of proceedings.

The newly-published ruling that reclusive Hong Kong Mr Wu’s company breached lease conditions for Double Island provides a damning insight into the state of the Far North asset.

Land Court Judge Peta Stilgoe took a dim view of Mr Wu’s barrister Douglas Quayle’s argument that because a Palm Cove-based kayak tour company visited the island, it was operating for tourism purposes.

One of the terms of the lease is to have public mooring facilities and amenities. Picture: Supplied

“The pictures of the island … show a dilapidated, uncared for, and in some places, dangerously decrepit former resort,” she said.

A lease for tourism purposes under the Land Act entails having a major tourist facility or resort development and Judge Stilgoe said it required overnight accommodation, facilities such as a food and beverage service, and activities one might expect on a holiday.

“Double Island has none of these things,” she said.

Judge Stilgoe said the kayak tours were not operated by, or on behalf of, Fortune, and there was a suggestion they did not access the leased area.

Millionaire Hong Kong businessman Benny Wu has owned the Double Island lease, off the coast of Palm Cove in Far North Queensland, since 2012. Picture: Brendan Radke

“If the tours do access the leased area, the attendees are not provided with accommodation or any facilities such as food and beverage services, or even access to toilet facilities,” Judge Stilgoe said.

She said there was no dispute Fortune received a remedial action notice.

“Even by its own account, Fortune has not remedied the breaches,” Judge Stilgoe said.

Mr Wu has six weeks from the May 7 ruling to lodge an appeal in the Land Appeal Court.

Former Double Island owner John Palasty has stated he was keen to acquire the lease and Morris Group founder Chris Morris, whose portfolio includes Orpheus Island and Pelorus Island, has also indicated interest.

Mr Morris said he would prioritise opening public day use facilities and building a beachside bar before progressing with a resort.

Timeline

2012 – Mr Wu’s Fortune Island Holding acquires the 17ha lease for Double Island for $5.68m

2020 – Cairns Regional Council audit submitted to state government alleges the lessee has been in breach of lease conditions for some time

August 2022 – State government issues ultimatum to Mr Wu to take action to meet lease conditions or risk forfeiture

March 2023 – Mr Wu fails to meet deadline to have Double Island operating within the terms of the lease although his company sends multiple reports denying knowledge of breaches and stating if there are breaches, “remedial action is imminent”. Newly-released government report into the state of Queensland’s islands recommends taking immediate action to cancel lease for noncompliance.

May 2023 – State government notifies Mr Wu of its intention to start proceedings in the Land Court

September 2023 – Cairns police confirm they were called in to act as “peacekeepers” between live-in caretaker Jacek Wojtas and Department of Resources staff seeking to inspect the island

May 2024 – Land Court Judge Peta Stilgoe rules that the lease may be forfeited due to breach of lease conditions. Lessee Fortune Island Holdings has six weeks to appeal.

Originally published as Date strip Benny Wu’s Double Island lease unclear