My take was that it was first and foremost a pretty standard multi stage redevelopment play. Buy a whole bunch of run down units along with a bunch of undeveloped correctly zoned land, knock the place into shape and sell item by item. The resort itself was not and is not worth much. Realestate.com.au shows they have sales, but maybe not enough/fast enough to fund the next project (stage 2 - some other run down resort or an old milk farm or whatever), but it could still come off. Develop stage 1 and use most/all of the income from stage 1 sales to develop stage 2 (no profits so the low tax take won't hurt cashflow), then stage 2 is fully developed and owes you nothing. So you pay all your tax as stage 2 sells but it doesn't matter because its all profit anyway.
OTR Price at posting:
31.5¢ Sentiment: Hold Disclosure: Held
