Liquidators to sell $250m luxury marina development in Burnett Heads

A $250 million marina development on the edge of the Great Barrier Reef has gone into liquidation, owing millions of dollars to creditors and leaving buyers in limbo.

Gateway Marina was expected to transform the coastal Bundaberg suburb of Burnett Heads, four-and-a-half hours north of Brisbane, into a Whitsundays lookalike.

There has been mixed reaction in the community about the project, which has council approval for a 318-berth marina, luxury waterfront apartments, a yacht club and commercial space.

Financing dispute

Dredging began in 2022 and construction of the apartments was due to begin in late 2023, but all work was halted due to a dispute between company directors over financing.

an aerial view of a coastal area

Burnett Heads Marina when dredging began in 2022.(ABC Broad Bay: Johanna Marie)

In February, the New South Wales Supreme Court issued a liquidation order for entities BH Developments QLD PTY LTD and BH Holdings QLD PTY LTD, with liquidators and receivers appointed to sell the project.

In a report to creditors last month, liquidators identified companies that were owed $7.9 million.

One of the directors, Simon Harvey, said it had become the main financier despite an equal funding agreement between the two companies.

“We hope the community will support this process, which is ultimately necessary to give the development a chance to start again as soon as possible,” he said.

Harvey said most of that money was related to party loans.

“Of the $7.9 million owed to creditors, $7 million is owed to my company and main financier, Beauwave Pty Ltd, and $200,000 is owed to the director of the other project entities, Mr Ian Sroczynski. “

an impression of a coastal marina

The development would have included a hotel and a shopping precinct.(Supplied: Gateway Marina)

Buyers waiting for the result

It is understood more than 10 apartments were sold off-plan and deposits were held pending the outcome of the sale under receivership.

“I am grateful to all those stakeholders who have offered their unwavering understanding and support,” said Mr Harvey.

Artist's impression of a coastal apartment complex.

Construction of the apartments was expected to begin in 2023.(Supplied: Gateway Marina )

Bundaberg’s property market is among the strongest in the country, with home values ​​soaring 79.1 per cent in five years.

The increase has been mainly attributed to regional migration.

Bundaberg Mayor Helen Blackburn said the failed project was “disappointing” for the community.

“It’s quite worrying that they go into liquidation, but that happens from time to time with developers,” he said.

“(It’s) an opportunity for another developer to come in and purchase that site and move forward with the marina and the plans that have already been put in place.”

a man standing near a construction site

Sydney-based developer Simon Harvey visits the construction site at Burnett Heads.(ABC Broad Bay: Johanna Marie)

Harvey said that despite the liquidation and receivership process, he hoped the project would progress with new owners.

“Burnett Heads is a rare gem,” he said.

“My greatest hope is for The Gateway to become a vibrant community center that enhances the lifestyle of residents and the community while contributing positively to the region’s economy.”

Aware , updated