General News
8 May, 2026
Death knell for water park
THE war in Iran and global price hikes have sunk a $210 million resort and waterpark project at Kewarra Beach.
Developer Darren Halpin has pulled the pin on the project at the former Paradise Palms golf course with the future of the site unclear.
The accountant and his partners have lost $21 million spent on Reefsedge with most of the civil works completed, as well as key components and water slide foundations. The start of construction was imminent.
“After more than five years of extensive planning, design and civil works, it is with deep regret that we announce the Reefsedge Resort and Waterpark project will not be proceeding,” he said.
“This decision has been exceptionally difficult to make and has only been reached following careful and considered evaluation.
“A significant and rapid escalation in project costs has rendered the development financially unviable.
“This outcome is deeply disappointing for all involved. Reefsedge was conceived as more than a development – it was a vision to create a landmark destination for Far North Queensland.
“The project aimed to deliver significant economic and tourism benefits, support local businesses, generate employment and provide a unique and enduring experience for residents and visitors alike.
“The last 16 months has seen costs rising significantly faster than inflation, however, the recent price shocks caused by the war in Iran have meant that the project is no longer financially viable.
“The ongoing impacts of this conflict have increased the project costs by just over $29 million and heavily impacted supply chains for the materials required. To date, just over $21m has already been spent on the project.
“Ongoing supply chain disruptions, increased fuel and energy costs, significant rises in the price of key materials – including bitumen, concrete and petroleum derived products such as plastics and piping – have collectively driven costs up beyond feasible limits.”
Mr Halpin said work started in July 2025 and the project remained financially sound for the developer and bank right up until February this year.
The project promised 400 operational jobs, 250 in construction and tens of thousands of visitors.
On ABC Far North radio, Mr Halpin rejected claims the project was never going ahead.
“No-one spends $21 million right on planning, consultants, fees, bringing in containers from overseas, travelling the world, seeing water parks,” he said.
“ ... we live in the real world, and when your development and doing developments, you have to make a profit. And if you can’t make profit, you don’t, you don’t do it.
“So, we tried every possible way, bringing in partners, downsizing, restaging it, trying to build part of the water park, trying to do the wave pool. None of those met any of our financial hurdles.”
The future of the property remains uncertain, with all stakeholders assessing the options.
