GKI crypto backers have 'zero doubt' they'll build resort
DIRECTORS of the crypto currency consortium poised to take over Great Keppel Island's stalled resort have "zero doubt” they'll reach the financial triggers to secure the deal.
Project co-founder Tim Sommers confirmed the company already had reserve funding in place and had paid a deposit to Tower Holdings.
Mr Sommers said $90 million was needed to start construction of the first stage early next year.
Roughly $300 million is required for the entire project.
He said he considered the deal "watertight” unless the consortium failed to "hit certain financial milestones”.
However, he has "zero doubt” those financial targets would be achieved.
Despite conflicting media reports, Tower Holdings CEO Anthony Aiossa told The Morning Bulletin the Sydney-based consortium were their preferred investors.
"We thought it was the most compelling proposal at the time,” he said.
It is understood the State Government, as landlord, still has final say on who takes over the island's lease.
The plan would see the public able to buy a slice of the investment through GKI Tokens in a share market-style deal.
The token scheme would be one of the first crypto-backed property deals of its kind.
Once the consortium's plans are approved by government regulators, there will be an offering for accredited investors with incomes over $250,000 or $2 million in assets.
The minimum buy-in for these clients would be $10,000.
Mr Sommers said a retail licence would then open up investment opportunities to the general public, with a minimum buy-in of $100.
"We're going to welcome that (mum and dad investment) because the whole idea of blockchain is it's decentralised, so mums or dads or people like you or I should be able to put money into a project like this,” he said.
"Everyone that contributes will have an ownership element of the island.”
With the project funded, based on the token buy-ins, Mr Sommers said the resort was expected to be debt-free.
Stage one will include the 250-berth marina, hotel, and international airstrip.
It would be the first luxury accommodation built on the Great Barrier Reef in three decades, and hitting the right market with international visitors will be key to its success.
"It's critical for us that that hotel is a world-class destination and experience,” Mr Sommers said.
In the 24 hours since the announcement, the GKI Tokens website has been inundated.
"People have been looking forward for 10 years for this island to be developed ... they're intrigued and excited,” Mr Sommers said.