Altum Properties was seeking to take over the leases of Great Keppel Island from current lessee Tower Holdings which had controversial plans for the island that included a casino.
Tower Holdings purchased the GKI Resort in 2007, but then closed it in February 2008 and started a new development application which took almost six years, three attempts, 90 consultants and $10 million to receive approval in March 2013 by three levels of government.
The plans to develop the project changed over the years and it was a significant issue at the last state election.
But the Resources Minister Scott Stewart said on Monday that a part of the lease transfer process included an independent financial and managerial capability assessment of Altum Properties, which was conducted by Deloitte.
“This found that the company does not have, nor has it secured the financial capability to deliver the proposed development,” Stewart said.
“For this reason the lease transfer to Altum will not occur.”
“This Government remains committed to seeing development on Great Keppel Island which is why we have already committed $30 million for the development of common-user infrastructure on the island.”
Altum’s Rob McCready was not available for comment but told the ABC the company had submitted a new lease transfer application.
Tower’s plans for the development included 700 luxury villas and 300 luxury apartments as well as a 250 berth marina and an 18-hold golf course.
Jump to next article