Mayfair fights for control of $11m Mission Beach property portfolio

Mayfair 101 investors have moved to wrest control of millions of dollars worth of Mission Beach property from trustees after the assets were stripped by the finance regulator in 2020.

Mayfair 101 managing director James Mawhinney at Mission Beach in 2022 with Dunk Island in the background. Picture: Peter Carruthers

Mayfair 101 investors have moved to wrest control of millions of dollars worth of Mission Beach property from trustees after the assets were stripped by the finance regulator in 2020.

The majority of Mayfair investors voted to formally instruct the trustee to remove Mr Said Jahani and Philip Campbell-Wilson as receivers from fifteen trusts.

The 25 properties are all that remains of a 130 property Mission Beach real estate portfolio following a house and land fire sale in 2020 when plans for a $1.7bn Cassowary Coast tourism mecca were derailed by the Australian Securities and Investments Commission amid allegations of the investments being unsound.

Mayfair 101 purchased Dunk Island but was later stripped of the lease. Picture: Tourism Tropical North Queensland.

As a result of the company’s winding up, Mayfair 101 was unable to refinance its real estate portfolio which caused Dunk Island to be repossessed and sold along with more than 100 Mission Beach properties.

The noteholders, who met a sophisticated investor test have been without principal and interest payments for nearly four years.

Mayfair 101 Group borrowed funds from a private lender in a deal described in the Federal Court in 2021 as the “worst loan ever” which “enriched Naplend and was a fatal blow to Mayfair”.

Mayfair managing director James Mawhinney said his company paid $6.6m for the 15 properties which are now estimated to be valued at $11.5m.

“Removing these receivers will assist us to regain control of the remaining real estate assets,” he said.

“It will stop the erosion of value from insolvency practitioner fees and bring us a step closer to our goal of making our noteholders whole.

“This vote shows the steadfast support we have among our noteholders.

“I thank them for their support and confidence in getting this terrible situation sorted out.”

Mayfair 101 CEO, James Mawhinney seen leaving the Melbourne Magistrates Court while accompanied by lawyers, on Tuesday 9 April 2024. Picture: Luis Enrique Ascui

Mr Mawhinney had previously been banned from spruiking financial investment services for 20 years but the order was repealed on appeal due to procedural fairness not being granted.

Cairns investor Bruce Golightly invested about $1m in M Core Fixed Income notes but has not received any dividend on the investment for four years.

“The leadership at ASIC need to accept they got their campaign against Mayfair 101 wrong,” he said.

“These votes show that the people whose money is at stake want Mayfair back in control of the assets, the insolvency practitioners removed, and for Mayfair to be allowed to get back on with their business.

Cairns investor Bruce Golightly lost $1 million after investment company Mayfair 101 was wound up by ASIC. Picture: Brendan Radke

“No one was harmed until ASIC came along (and) their actions have not served the public interest.

“This is the stark reality of the situation which deserves the scrutiny of the Australian Parliament.”

The latest blow for the embattled businessman came last month when Mr Mawhinney was banned from leaving the county by the Melbourne Magistrates Court after being arrested on four counts of engaging in dishonest conduct which relate to assets managed by IPO Wealth.

Outside the court Mr Mawhinney said he was considering a malicious prosecution case against ASIC.

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Originally published as Mayfair fights for control of $11m Mission Beach property portfolio