Latest News

Back to Latest News back

 

Dunk Island repossession a setback to planned billion-dollar Mission Beach redevelopment

Dunk Island repossession a setback to planned billion-dollar Mission Beach redevelopment
August 19, 2020

Developer James Mawhinney’s plans to build a billion-dollar resort at Queensland’s Mission Beach region appear to have be over after former owner Peter Bond repossessed the Dunk Island resort at the centre of the scheme.

As reported by Guardian Australia, Bond’s move came after the corporate regulator, which has been investigating Mawhinney and his investment group, Mayfair 101, for three years, obtained a court order freezing the assets of several entities associated with the project in Mission Beach, Queensland, and banning Mawhinney from leaving the country.

In legal proceedings, the Australian Securities and Investments Commission (ASIC) has accused Mawhinney of misleading investors in Mayfair 101, which has raised at least $140 million from the public, by claiming some of its offerings were similar in safety to a bank term deposit.

Separately, Mawhinney has also been accused in court of transferring potentially valuable assets away from the grip of investors and to a company in the British Virgin Islands, 101 Investments, of which he is the ultimate owner.

However, on Tuesday, Bond’s son, Adam Bond, told Guardian Australia the family’s company, Family Island Operations, had taken control of the island after Mayfair failed to meet payment terms.

He advised “unfortunately under the circumstances we have been left with no alternative but to foreclose.

“We have spent several months working with Mayfair in an attempt to engineer a solution. However, despite several extensions to payment terms Mayfair have remained unable to meet their obligations.”

The foreclosure is likely to have huge repercussions in Mission Beach, where some members of the community had hoped for an economic renaissance led by the redevelopment of Dunk Island and others had agreed to sell their properties to Mayfair 101.

Adam Bond added “we recognise the impact this decision may have on Mayfair investors and the Mission beach community.

“We can assure all concerned that this decision was not taken lightly or without other alternatives being thoroughly explored first.

“In our capacity as controller of the asset it is our intention to move quickly to ensure that Dunk Island can attract the right ownership to continue toward reopening and reestablishing its position as one of Queensland’s iconic destinations.”

Last Thursday, the Federal Court judge Stewart Anderson appointed Said Jahani and Philip Campbell-Wilson of Grant Thornton as provisional liquidators of a key Mayfair 101 company, M101 Holdings, and banned Mawhinney from promoting fixed-income notes that Asic had previously complained Mayfair had compared to bank term deposits.

Anderson also banned Mawhinney from leaving the country and froze the assets of 14 property trusts Mayfair 101 had used to buy land in and around Mission Beach.

He said that on the basis of material ASIC supplied to the court, which included the existence of a Monaco bank account in Mawhinney’s name, he was “satisfied that there exists a considerable risk of potentially fraudulent dissipation to the detriment of the relevant note holders”.

He went on to say that Mawhinney ought to be banned from raising further money from investors using the fixed-income notes due to several matters of “serious concern”.

These included the fact that as of 30th March M101 Nominees had received more than $67.5 million from investors, but by 1st July had just $2,765 in the bank; that investor funds were “used to fund a loan that was not adequately secured; that Mawhinney had stated a desire to restructure his companies to “protect our assets from recourse from receivers where practical”; and that ASIC feared the fundraising was “akin to arrangements colloquially referred to as a ‘Ponzi scheme’.”

Images: Dunk Island (top) and Mayfair 101's concept for Dunk Island (below). Images courtesy of Mayfair.

Related Articles

20th August 2020 - North Queensland Museum of Underwater Art receives additional funding for completion in 2021

28th July 2020 - Neighbouring Outback Queensland councils partner in major destination marketing campaign

16th July 2020 - Queensland Government ends Cairns Global Tourism Hub process

20th May 2020 - Newspaper reports that plans for Sunshine Coast’s Actventure waterpark and resort are ‘expected to be finalised in coming weeks’

8th May 2020 - Mayfair 101 appoints new chief executive for under scrutiny Dunk Island rejuvenation project

7th March 2020 - Underwater ‘reefsuites’ now welcoming guests on the Great Barrier Reef

5th March 2020 - Great Barrier Reef tourism operators highlight the distressing impacts of coral bleaching 

18th January 2020 - New Whitsundays tourism campaign set to be launched

2nd November 2019 - Great Barrier Reef island reborn as eco-friendly luxury holiday destination

8th October 2019 - Great Keppel Island sale to prompt renewed resort development plans

23rd September 2019 - Sale of Far North Queensland’s Dunk Island a prelude to resort refurbishment

30th August 2019 - Great Barrier Reef status downgraded to very poor for first time

23rd April 2018 - No sign of reopening of cyclone-damaged Queensland island resort

6th April 2018 - ASIC charges Clive Palmer over Coolum resort villa takeover bid

28th September 2016 - Troubled Port Hinchinbrook resort acquired by new owners

4th April 2016 - Aquis Cairns resort to proceed without casino

7th June 2015 - Tired island resorts hurt the appeal of Great Barrier Reef tourism

30th July 2014 - Major new waterpark planned for Sunshine Coast


Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Debitsuccess

Debitsuccess is now part of Xplor Technologies.

read more

Billing / Finance / Fitness / Golf / Recreation

 
 

Active World

Since 2019, Active World's development team has been delivering a comprehensive single solution that caters to the diverse requirements of successfully operated and managed leisure centres. The…

read more

Aquatics / Billing / Fitness / Recreation / Technology

 
 

Jonas Leisure

Jonas Software operates over 110 independently managed software brands around the world, providing them with the strategic guidance and financial security required to be leaders in their respective…

read more

Aquatics / Billing / Fitness / Recreation / Sport

 
 

revolutioniseSPORT

revolutioniseSPORT is the emerging market leader in online club management in Australia. Whether it is memberships, registrations, events, online sales or governance tools - revolutioniseSPORT is the…

read more

Recreation / Sport / Technology

 
 

COMMERCIAL AQUATICS AUSTRALIA

Commercial Aquatics Australia provides aquatic solutions nationwide and is one of the largest and most experienced companies specialising in the design, construction, renovation, service, maintenance…

read more

Aquatics / Design / Play / Waterparks

 
 

AUSTRALIAN WATERSLIDES AND LEISURE

A leading designer and manufacturer of innovative waterslides and attractions, Australian Waterslides and Leisure (AWL) is also able to advise clients in the areas of concept and design, feasibility…

read more

Aquatics / Attractions / Play / Waterparks

 
 

WATERPLAY Solutions Corp

Whether your goal is increasing your centre's revenues or creating an engaging environment, why not add play to your project? If you're looking for stylish aquatic play features, kid-tested…

read more

Aquatics / Attractions / Play / Recreation / Waterparks

 
 

Ticketworx Pty Ltd

Ticketworx (formerly House of Tickets) is Australia and New Zealand’s foremost ticket specialist servicing some 2,700 clients and producing in excess of 30 million per tickets per annum.…

read more

Entertainment / Events / Technology / Ticketing / Venues

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business