Syndicate starts $450m Hinchinbrook revival

A private Australian syndicate has taken its first steps in transforming the Port Hinchinbrook resort community into a $450 million tourism drawcard for North Queensland.The Passage Holdings, an Australian company linked to American businessmen Lewis Cohen and Stephan Pinto, already has spent $4 million on improvements at the resort which was battered by Cyclone Yasi in 2011.The syndicate took possession of the resort and marina property last year and is preparing to settle on its $3 million purchase from liquidator FTI Consulting in coming weeks.The Passage Holdings has engaged renowned architects DBI Design to help realise its vision for the resort, which will be renamed Hinchinbrook Harbour and Resort and staged over 10 years.Mr Pinto said the $450 million masterplanned project offered the opportunity for Port Hinchinbrook to become one of Australia’s finest, safe-haven marina destinations with easy access to the Cassowary Coast fishing and boating paradise.It will capitalise on Far North Queensland’s appeal to a wide cross section of tourists, from international visitors and families to anglers and backpackers.DBI Design’s masterplan for the resort includes a $45 million international fishing village, new marina, family resort, water theme park, 300-site motorhome park, camp grounds, backpacker accommodation and waterfront residential lots and apartments.Mr Pinto said the syndicate’s $4 million initial investment included around $500,000 on restoring the sewerage treatment plant, more than $2 million on the grounds and marina village, commercial building, street lighting and public access, plus $750,000 on masterplan designs and consultation.The resort’s restaurant/retail precinct is due to reopen in mid-July following repairs, and work is poised to start on dredging the heavily silted harbour and the rebuilding of the 266-berth marina.The resort was first developed by the late Keith Williams adjacent to Hinchinbrook Island, near the historic village of Cardwell, during the 1990s.It fell into the hands of liquidators following the collapse of Williams Corporation in 2013.Mr Pinto, who has developed residential and commercial property in the US for 35 years, said he was amazed at the value and potential of the magnificent property.“I have been in real estate for a long time with experience in tourism assets worldwide - when I was informed about this project, I found it to be an interesting and compelling story,’’ he said.“Having experienced Hurricane Katrina and the effects it had on our properties in Texas, I knew there could be an opportunity for our investment group.“The impact Cyclone Yasi had on Port Hinchinbrook was similar.Mr Pinto said the syndicate felt comfortable committing initial capital resources into the $450 million project after performing months of due diligence.“We all look forward to bringing this possibility into a reality,” he said.“Due to past failures, there are some who may be sceptical but, as they say, ‘the train has left the station’ and this project is on its way,” he said.Mr Pinto established Allied Financial Services in 1993 which has an investor base which invests in opportunity-based real estate projects.As well as property interests, Mr Pinto’s investment interests include financial services, wholesale and retail distribution.His American partner, Lewis Cohen, has a background in finance and business and is President and founder of Diversified Products Group.