Clayton Robard Takes Half Of Resort
Sydney Morning Herald
Tuesday February 17, 1987
The industrial investment arm of the Clayton Robard group will take a half stake in redeveloping the Lindeman Island resort on the Great Barrier Reef.
Australian Investors Corporation Ltd yesterday announced its intention to buy into the $30 million project. The existing owner, a company controlled by Mr Peter Adelstein, will stay involved.
The resort involvement was announced yesterday along with a six-monthly operating profit of $731,000.
AIC will make a 1-for-2 rights issue to raise $11.5 million to pay for its participation in the Lindeman project and a 1-for-2 bonus issue on the expanded capital.
The company's managing director, Mr Michael Darling, said the Lindeman deal was seen as a strategic stake in Australia's tourism industry. Redevelopment will start in December.
"The proposed work will include an entirely new central complex, comprising restaurants, bars and shops, some 100 new accommodation units, new staff quarters and an upgrading of the beach and improved leisure facilities," he said.
Lindeman Island was the centre of controversy last year when East West Airlines (Queensland) announced plans to redevelop the resort and some adjoining national park.
The company - headed by Sir Edward Lyons - withdrew after a public uproar.
Mr Darling said: "We have been particularly concerned to ensure the redevelopment will make a positive contribution to the island's natural beauty which in our view is the large part of what makes Lindeman Island the unspoilt, affordable resort."
The island was planned as an alternative to other expensive resorts on the Great Barrier Reef.
© 1987 Sydney Morning Herald
