The redevelopment of a far north Queensland tourist island is in doubt after the Australian Securities and Investments Commission (ASIC) started legal action against developers the Mayfair 101 Group.
ASIC is alleging that Mayfair 101 engaged in misleading or deceptive conduct with respect to products offered to investors, charges the company says it will defend vigorously.
Mayfair 101 paid $31 million for the cyclone-ravaged island and also bought up to 200 properties in Mission Beach, which is about 20 minutes away from Dunk Island by boat, as part of its redevelopment plan.
According to a spokesperson from Mayfair 101, the project could be impeded by ASIC’s legal action.
“The Mayfair 101 Group remains committed to revitalising Mission Beach, Dunk Island and the surrounding region,” said the spokesperson.
“However, we are concerned that this unwarranted action by ASIC has the potential to disrupt our strong progress in the region.”
ASIC has accused Mayfair 101 of running misleading financial advertisements by promoting two debenture products as being term deposits online.
Further, ASIC said Mayfair’s promotional material for the products used words including “term deposit alternative”, “term investment”, “fixed term”, “certainty”, “confidence” and “capital growth”.
The company’s plan for the region includes building a golf course, three resorts on Dunk Island and upgrading the airport at Innisfail or Dallachy (near Cardwell) to accommodate international jets.
The area, which was once an extremely popular tourist destination, has struggled to recover since the devastation caused by Cyclone Yasi in 2011.
The island, which was also hit by Cyclone Larry in 2006, is divided into three parts – a national park area, a freehold area and the council-owned spit, which is used for low-impact activities such as camping.
Have you ever visited Dunk Island or Mission Beach? Would you like to see the area restored to its former glory? Do you think investing in the area sounds like a good idea given its history of cyclone activity?
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