The Hunt Resort on Fitzroy Island near Cairns has been placed in receivership with debts of over $50 million.
The resort, owned by property developer Joshua Hunt, has been undergoing a $100 million redevelopment since Hunt bought the island in November 2006.
But the island’s previous owner, Cairns tourism operator Raging Thunder, has called in administrators Jonathon McLeod & Partners. Raging Thunder managing director Fred Ariel has only paid $10 million of the $18 million asking price and Raging Thunder is still owed just under $13 million after interest and penalties.
Hunt’s main lender, BankWest, has also appointed Ferrier Hodgson as receivers. It is believed BankWest is owed just under $50 million.
Greg Moloney, from Ferrier Hodgson, told The Cairns Post that his firm will manage the resort and complete outstanding construction.
“The resort will remain open and it is my intention to complete all necessary outstanding infrastructure works and to work closely with Wyndham (Wyndham Vacation Resorts is the manager).
According to a report in The Australian Financial Review, only 12 of the 47 luxury units developed on the island have been sold.
Hunt has attracted publicity for his resort by offering free accommodation for 500 victims of the Victorian bushfires, and having the resort featured on the Ten Network reality show The Biggest Loser.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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