Tropical island repossessed
The future of one of the island jewels of the Great Barrier Reef is uncertain after a deal to buy it has collapsed.
Dunk Island in North Queensland has been repossessed after new owners Mayfair 101 failed to meet their payment obligations.
The 59ha was taken back only 11 months after the family company of Linc Energy founder Peter Bond sold it to Mayfair in a $31.5 million.
In a statement Family Islands Operations managing director Adam Bond said the decision to repossess the island was difficult.
"Unfortunately under the circumstances we have been left with no alternative but to foreclose," he said.
"We have spent several months working with Mayfair in an attempt to engineer a solution.
"However, despite several extensions to payment terms Mayfair have remained unable to meet their obligations."
Mayfair also bought about 200 properties at nearby Mission Beach to turn the region into a "tourism mecca", although it since suspended dozens of settlements citing COVID-19 impacts.
Mayfair said it was trying to refinance the project and remained committed to the Mission Beach region.
"Mayfair 101 group is well progressed with significant local and overseas institutional financiers who are currently undertaking due diligence on the project," it said in a statement.
"The group expects to complete the final stages of its refinance next month, enabling it to pay out the finance on Dunk Island provided by the Bond family in the required time frame and refinance its mainland property financier, Napla."
Originally published as Tropical island repossessed