Double Island in Queensland’s Tropical Far North is at the centre of a tug of war in the Land Court.
The Queensland government has filed proceedings against Hong Kong businessman Benny Wu’s Fortune Island Holdings, the island’s operator, to strip it of its lease of Double Island off the coast of Palm Cove.
Fortune Island was reportedly notified earlier this year of the Queensland government’s intention to begin forfeiture action, amid claims the island had fallen into disrepair.
Wu acquired the island in 2012 for $5.68 million.
Queensland Resources Minister Scott Stewart said the island was a natural asset and should be accessible and enjoyed by Queenslanders.
“As a government we are committed to the responsible development of our island resorts for the jobs and business opportunities they create in regional Queensland,” Stewart said.
“However, lessees on government property are required to meet the conditions on their leases.”
The Queensland government commenced formal proceedings for the forfeiture of the Double Island lease this week for alleged non-compliance.
The Urban Developer understands the lease specified that the island must be used for tourism uses and it was the first time the Queensland government had taken this action on an island lease.
Once a Hollywood go-to, the island has reportedly deteriorated and earlier this year the state government is understood to have issued Mr Wu with a warning that the island should be restored and opened up for tourism.
