New hope for Hedland housing PDF Print E-mail
THE WEST AUSTRALIAN   
Monday, 21 January 2013 12:29

A $150 million Port Hedland accommodation project put into receivership by BHP Billiton may have another chance, with another mining company potentially becoming an anchor tenant.

A consortium bidding to complete the 680-room resort known as The Landing has offered to pay BHP $26 million - about half of what it is owed - as part of a settlement with creditors.

BHP last month rejected a $50 million offer from Empire Hotels and Resorts (WA), which was contingent on the miner committing to renting 400 rooms.

It's believed either Fortescue Metals Group or Gina Rinehart's Roy Hill Holdings have agreed to make a tenancy commitment.

Empire Hotels and Resorts is hoping to win acceptance from receivers Ernst & Young on Monday.

The consortium is understood to be made up of Westralia Infrastructure, two Pilbara housing developers, Oaks Hotels and Resorts and Construction Industries Australia.

On top of a $52 million debt to BHP, builders, trades, businesses and suppliers claim collapsed developer Port Village Accommodation owes them about $50 million.

Under the proposal BHP rejected, Empire Hotels and Resorts would have spent $132 million paying off creditors and finishing the suspended project.

Creditors this week voted to wind up private equity group Centauri Property Group, majority owner of Port Village Accommodation.

The biggest shareholders in Centauri were director Rob Cornish and the family of State Labor MP Peter Tinley.



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