Great Keppel Island Resort Project update
Posted on August 19th, 2020
The Great Keppel Island Resort Project has received a plethora of media attention over the years, this week taking another twist, with the State Government and Queensland owned and based Altum Property Group both distributing media releases yesterday, leading to a crisis meeting between Minister Kate Jones and Altum Directors confirmed for this Thursday 20th August 2020.
Tower Holdings purchased the GKI Resort in 2007, closed it in February 2008 and proceeded with a new development application which took nearly six years, three attempts, 90 consultants and $10 Million dollars to receive approval in March 2013 by three levels of government.
Altum entered into a sales contract under due diligence with Tower Holdings and have been working closely with the State government over the past nine months to reach agreement on a number of complex aspects of the development, facing a 30th August deadline for finalisation of the sale.
Altum is the only company to date to thoroughly investigate the complexities of the development and paid a considerable fee to the State government to engage independent consultants Deloittes to review their Financial Management Capability Assessment (FMCA).
The report revealed that Altum have the Management capability for the 12 year development project, but acknowledged that of the $1.5 Billion total price tag, $500 million is required to develop the necessary ‘common user infrastructure’ such as water, power, marina, airstrip, roads, connectivity, which struggle to prove a return on investment (ROI) and would require government support, just as this type of infrastructure is provided on the mainland. Altum proceeded to seek both State and Federal government support for up to $200 Million of that common user infrastructure (including the $25 million already committed by the State government in 2017) in order for them to seek a $300 Million Loan with the Northern Australia Infrastructure Facility (NAIF).
The $1 Billion tourism infrastructure including hotel development, retail, facilities is absolutely within the capability of Altum without government support, but the $500 Million common user infrastructure must be developed prior to the tourism facilities.
Capricorn Enterprise will continue to support and work with Altum and all levels of government as we always have, to see a GKI Resort come to fruition. Whatever the future holds, collaboration between the private and public sector, and all levels of government and all political persuasions is critical, if this project is to be successful. The twelve years it will take to complete the existing GKI Resort development approval will outlive any cycle of State or Federal government, so the politics must be taken out of the equation if this region is to once again enjoy a state of the art Resort on Great Keppel Island.
Queensland Government Media Statement – https://statements.qld.gov.au/statements/90447
11/10/2018 Great Keppel Island Resort Sale Update
11/10/2018 Great Keppel Island resort sale confirmed
15/6/2015 Casino Solution is vital for GKI