Keswick Island back on sale after Chinese developer terminates transfer deal
Basil Bay is a popular swimming spot on Keswick Island. (Supplied: Mackay Isaac Tourism)
In short:
Keswick Island is back up for sale after a year of negotiations between a potential buyer and the Chinese seller broke down.
Residents are calling for a new head lease owner to invest in marina and jetty upgrades.
What's next?
Expressions of interest for the purchase of the island close next week.
Residents of a tropical island are fuming after a deal between its Chinese owners and a potential buyer fell through, leaving vital infrastructure in disrepair.
Keswick Island, which is home to about 80 residents, lies off the coast of Mackay in north Queensland.
Developer Oasis Forest Ltd purchased the 117-hectare head lease in 2019 but has since placed the island back on the market.
About a quarter of the 517-hectare island is on sale for tourism and residential development. (Supplied: Mackay Isaac Tourism)
During a parliamentary meeting on Wednesday, Natural Resources Minister Dale Last said Oasis Forest had terminated a sale of the head lease, which was lodged to the government in April last year.
The transfer had been subject to a financial and managerial capability assessment before a decision could be made.
Residents want investment
Island residents have been eagerly awaiting a transfer of the head lease.
Adrian Hayne moved with his wife and children to Keswick Island from the Gold Coast in 2020 to escape the busyness of the mainland.
The Hayne family plan to stay on Keswick Island. (Supplied: Adrian Hayne)
He said an otherwise peaceful life had become difficult, with a ferry service to Mackay often out of action due to disrepair.
"Now people are resorting to flights only to the island, unless you've got your own boat, and those flights are $600," the Keswick Island Progress Association president said.
Mr Last said Oasis Forest had been "non-compliant with its [lease] conditions" due to a lack of development on the island's marina and jetty.
In a statement, the resources department said it had a "range of compliance mechanisms available" for island leaseholders.
The tourism lease of Double Island, near Cairns, was stripped from Hong Kong-based billionaire owner Benny Wu in June last year.
Oasis Forest has been contacted for comment.
Owners 'gutted' by sale breakdown
Community members met with the Department of Resources on Thursday to discuss the sale.
Mr Hayne said residents were told the previous deal had been close to government approval before negotiations broke down between buyer and seller.
Adrian Hayne and his wife Lee Corbett own a property on Keswick Island. (ABC Tropical North: Hannah Walsh)
He said it could be up to a year before another transfer of lease could be approved.
"This has been 18 months in the process," he said.
"We're absolutely gutted to find out that this has fallen through and that the island is now back up for sale."
High interest in Keswick Island
Expressions of interest for the purchase of the island close on August 12, with real estate agent Sam Abel from Colliers welcoming interest from developers.
"It's been really great to see a high level of that inquiry … from sophisticated developers and capital that we have past relationships with," Mr Abel said.
A ferry service is scheduled to operate between Keswick Island and Mackay. (ABC Tropical North: Hannah Walsh)
The guiding price of sale is about $30 million.
Mr Abel said Colliers would be looking for an owner interested in investing in tourism and residential amenities, including an upgraded jetty and marina.
"They need to have development backgrounds and development capabilities and be able to prove that they have the capital to be able to take Keswick Island to its vision,"he said.
Any transfer of lease would require approval from the resources minister.