Cashed up developer proposes Double Island makeover
In a remarkable twist, a former Double Island owner and millionaire property magnate is itching to offer Benny Wu cash for the ailing tropical resort, but the proposal comes with a catch.
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In a remarkable twist, former Double Island owner and millionaire property magnate John Palasty is itching to offer Benny Wu cash for the ailing tropical resort, off the coast of Palm Cove.
However, before the deal can be brokered a significant stumbling block in the form of Mr Wu being uncontactable, needs to be overcome.
The Core Asset Development group senior adviser said he has exhausted all leads in attempts to contact the Hong Kong-based businessman.
“We are prepared to make an offer to Mr Wu but no one can track him down,” he said.
“We are prepared to take it on straight away, I could settle overnight.”
Double Island was sold for $5.68m in 2012 by OzEmail founder Sean Howard to Mr Wu.
Mr Palasty aquired the island for $4m in 2000.
In August last year the Department of Resources presented Mr Wu with an ultimatum to be open for tourism or be kicked out in a crackdown on terms of the lease, that states the resort and day use facilities must be operational.
The deadline for compliance passed on March 31.
On Friday a precedent was set when Great Keppel Island resort owner Tower Holdings had their lease cancelled by the state government after racking up an overdue rental bill of $878,000.
According to the Department of Resources a condition report provided by Mr Wu’s company is currently being considered.
“Once the report has been fully considered the department will determine the appropriate next steps,” a spokesman said.
If the department is satisfied that forfeiture is appropriate 28 days’ notice is given, following which, the matter can be referred to the Land Court who ultimately decide if the lease will be stripped.
Mr Palasty claimed if this happens Mr Wu would not get paid and time was running out for Fortune Island Holdings to offload the asset before the courts take action.
“He paid $5.5m (and our offer) would be substantially less than that,” Mr Palasty said.
Mr Palasty said the Radisson Hotel Group would be enlisted to manage the resort at Double Island but before then significant work was needed to get the languishing property up to standard.
The property tycoon said his construction company could soon have the property operating as an eco-resort if successful in acquiring the lease.
“We estimate there would be 3-6 months’ worth of work to get it back operating,” he said.
“GHD did some work about a sewage pipeline and that would service the island with power.
“Getting services to the island is the key and we would do what we specialise in and that is an eco-tourism resort.”
Mr Palasty said he is passionate about the resort that during its heyday hosted Hollywood A-listers such as Brad Pitt and Keanu Reeves.
“It used to be a fantastic resort and had a beautiful library,” he said.
Late last year Core Asset Development group opened Hotel Australasia in Eden on the New South Wales south coast, after the property sat boarded up for more than a decade.
Mr Wu’s representative in Cairns was contacted for comment.
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