Fiji house built for Peter Drake - founder of Gold Coast fund manager LM - set to sell

The saga surrounding a large Fijian house built as a holiday home for the founder of a failed Surfers Paradise-based funds manager might be nearing an end. READ THE FULL REPORT

THE saga surrounding a large Fijian house built as a holiday home for the founder of failed Surfers Paradise-based funds manager LM might be nearing an end.

There’s apparently a contract on the Peter Drake property, tagged Vesi Palace by Fijians, but one with a long settlement period.

The deal, if it goes ahead, will end a frustrating time for Peter’s bankruptcy trustee in terms of gaining control of the forlorn home then finding a buyer.

The property, which has been described in an advertising blurb as ‘designed and built as a luxurious holiday home for an Australian-based banker’, first was marketed more than two years ago at $US750,000.

LM founder Peter Drake.

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Later the target was dropped to $US550,000 and in June trimmed further to $US450,000 – and that was described as ‘negotiable’.

The fact that the ‘palace’ might be moving into new ownership might not be good news for an Australian TV production outfit.

It was used by Endemol Shine Australia as its main production office and administration centre for the making of three seasons of Australian Survivor.

The property’s a stroll from a deep natural pool and the sandy beach of the Blue Lagoon, site of many of the challenges on Survivor.

An aerial of the house built for Peter Drake in Fiji.

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COVID-19 stymied the use of the property during the filming of a fourth season and a new owner might not want a tenant, even an Endemol.

The six-bedroom house is in an elite enclave near the town of Savusavu, on Fiji’s second-largest island, and is close to a luxury resort owned by international motivational speaker Anthony Robbins.

It was built ahead of the GFC and an adjoining lot was bought to house the tennis court and games room.

Owner Peter filed for bankruptcy in January 2015 in the wake of his LM group foundering and he declared unsecured debts of $342 million.

An aerial of the house built for Peter Drake in Fiji.

Quitting the holiday house has been something of a nightmare for his bankruptcy trustee.

The fellow, Worrells’ Jason Bettles, initially faced a bit of a ducks and drakes battle to get control of the property, meeting resistance from Peter, his ex-wife and a daughter.

With that sorted, he flew to Fiji in 2017 to inspect the house and employ an agent to sell it.

He found the house had been stripped of its furniture and certain fittings.

The former caretaker admitted taking furniture, artwork and other things from the property, selling some items and keeping others for her own use.

The trustee also found a Drake vehicle missing and it emerged, in meetings with the caretaker and her son, that they’d kept the vehicle in ‘part payment’ of money they allegedly were owed.

Worrells Solvency and Forensic Accountants' partner Jason Bettles. Photo: Jerad Williams

Meanwhile, price is only the start of the investment for a new owner.

It’s estimated they’d have to spend up to $US100,000 to restore the home’s grand room and games room to top condition, while the pool, tennis court, and caretaker’s cottage need work.