Tom Hedley buys troubled Plaza Palms Resort
A struggle to finalise the sale of a troubled housing site in Cairns, made more complex following the violent death of an executive director, has at last come to an end. See the designs.
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A struggle to finalise the sale of a troubled housing site in Cairns, made more complex following the violent death of an executive director, has at last come to an end.
Plaza Palms Resort has been sold to a well-known Cairns developer.
The 9160 sq/m site on McLachlan St Manunda, known for being a hotbed of crime and violent, anti-social behaviour, closed in May 2020 and tenants were rehomed throughout the city.
A process of amalgamating the 27 units belonging to about 34 property owners under the one title was finalised in the Cairns Supreme Court in May 2023 after a drawn out struggle to obtain joint consent from unit owners, co-owners and mortgagees for the drafting of a new survey plan required for the property’s sale.
The death of Janet Guthrie in 2023, who was the executive director of the company managing the units, Three Sistas, presented an additional “dilemma” for Justice Jim Henry when paving the way for the sale of the troubled housing complex.
Ms Guthrie in 2022 received a suspended six-month prison sentence for misuse of trust money after withdrawing $10,000 from Three Sistas’ trust account and inappropriately using the cash for personal and business costs.
Ms Guthrie was the sole shareholder of the business that managed the complex. A man has been charged with her murder and is awaiting trial.
In a letter from receivers Grant Thornton last month, all unit owners were informed the entire McLachlan St site had been sold for $2.2m after hitting the market in September 2023.
“We hope to provide all owners and interested parties with an estimate of their entitlements from net sale proceeds, and the distribution process and possible time frames as soon as possible,” joint statutory trustee Tony Jonsson wrote.
Property owner Serena Vaughn invested $250,000 on two units in the complex in 2006 having no inkling of the headaches that would later stem from the acquisition.
This week as the four-year process came to an end, a frustrated Ms Vaughn was less than optimistic she would see any return on her investment.
“We have lost everything, out of the $2.2m and I don’t think we are going to see any of that,” she said.
“We are not holding our breath, we paid all that money and this is what happened.
“I don’t give a shit anymore, we’re not going to be compensated.
“I’m angry, we bought that land in good faith and should have been dealt with a long time ago.”
The sale of the property to TW Hedley Group went unconditional in late March and work has now begun on demolition of the units.
The land is zoned as medium density residential and was spruiked as a rare and “outstanding opportunity” for redevelopment close to the Cairns CBD.
Tom Hedley said he had been in talks with Cairns Regional Council about a planned boundary realignment to create 600sq/m lots before the building of 30 freehold villas.
“I think it will be great for the area to tidy the place up and put some nice dwellings close to the city,” he said.
“(The $2.2m price tag) is not a steal but it’s what the market is, and it’s a bit of work to demolish the units and remediate the site.”
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