- 22 March 2013 | Surfing
The Kelly Slater Wave Company has suffered a major setback in its first artificial wave arena project. The investment proposed for the Gold Coast is suspended by the announcement that LM Investments has been placed into voluntary administration.
The fund manager governing $3 billion is under investigation by the Australian Securities and Investments Commission for breaches of corporation law in the property development of Maddison Gardens, at Pimpana, Gold Coast.
In August 2012, LM Investments and the Kelly Slater Wave Company signed a Memorandum of Understanding to build the world's first circular wave pool for surfing, at Maddison Estate.
Meanwhile, LM Investments has been placed into voluntary administration and Kelly Slater's artificial wave project might have to look for new investor and a new site.
"It is obviously not good for our potential wave pool business, but we aren't actually in business with Maddison as of now, and have been waiting to really understand what the truth of the whole matter is with the company anyway. Their other business dealings have nothing to do with us and they are people I don't personally know", Kelly Slater told our friends at Surfing Life, in Australia.
In 2008, LM Investments paid $89 million for the 118 hectare site for Maddison Estate. Today, the area is only worth 50% of its original value.
It is not clear if the Kelly Slater Wave Company will leave the Gold Coast for its artificial wave pool. In Australia, the Webber Wave Pools is also developing a high-end surf park with man-made waves.