Lauga won’t count her chickens before they hatch on GKI

CAUTIOUSLY optimistic – that’s how Keppel MP Brittany Lauga described her feelings about the latest program on the development of the Great Keppel Island Resort.

Yesterday it was confirmed Queensland company Altum had entered a conditional contract with Great Keppel Island Resort owner, Tower Holdings, to potentially take over its leases and development approvals.

“Its positive news that a contract has been signed between Altum and Tower to progress the Great Keppel island revitalisation plan,” she said.

Yesterday, after weeks of media speculation, it was confirmed the Queensland-based company was working towards a takeover of leases.

Mrs Lauga said the next step was the due diligence process, requiring Altum to prove it could meet the lease conditions and financial suitability requirements.

“These steps are very important in ensuring that we have the right developer who can take over the lease and develop the island as we expect,” she said.

It was this stage of negotiations that took the wind out of Wei Chao Pty Ltd’s sails – the previous investors for the Great Keppel Island Resort.

“The State Government will not just hand over the leases to anyone, we need to make sure Altum are who they say they are, and they have the capacity to develop the resort as we expect,” Mrs Lauga said.

Despite her reservations, she said she was looking forward to working with the Queensland-based developer.

“I do have a little bit more confidence this time,” she said.

“Particularly given we’re talking about a Queensland-based developer that has a track record in developing in Queensland.”

She believed Altum’s strengths as an investor lay with its familiarity of Queensland development legislation, the company’s recent and proven track record, and its access to finance.

Altum has recently completed the 179-apartment development, Parkridge Noosa nestled among Noosa National Park with commercial sales now underway.

The pressure from the State Government is on for Altum with work expected to get underway once the company has its ducks in a row.

Mrs Lauga said she expected financial due diligence to start immediately and be a quick process.

“We expect them to start work as soon as possible once the lease is signed off and transferred to them,” she said.

As for the critical infrastructure, supplying mains power and water to the island, she said the $60million project was still on track.

“They have also made it very clear a really important part of the decision to invest on Great Keppel has been the State Government’s commitment to the power and water project,” she said.

“Now that we have an investor who is working with the State Government to develop a resort on the island, I think that we will be able to get that project starting construction sooner rather than later.”

It is understood Altum was among the initial expressions of interest for the project.