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.

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

There had been mixed reactions in the community about the project, which has council approvals for a 318-berth marina, luxury waterfront apartments, a yacht club and retail spaces.

Dispute over funding

Dredging began in 2022 and construction on the apartments was due to start in late 2023, but all work had ceased due to a dispute between the company directors over the funding.

A wind-up order was issued by the New South Wales Supreme Court in February for the 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, the liquidators identified the companies owed $7.9 million.

One of the directors, Simon Harvey, said he had become the major funder despite an equal funding agreement between both companies.

"We hope the community will bear with this process, which is ultimately necessary to give the development the opportunity to get underway again as soon as possible," he said.

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

"Of the $7.9M owed to creditors, seven million is owed to my company and major funder, Beauwave Pty Ltd, and $200,000 owed to the director of the other project entities, Mr Ian Sroczynski. "

Buyers waiting for outcome

It's understood more than 10 apartments had been sold off the plan and deposits were being held pending the outcome of the receivership sale.

"I am thankful to all of those stakeholders who have offered their unwavering understanding and support," Mr Harvey said.

The Bundaberg property market is among the strongest in the country with home values skyrocketing 79.1 per cent in five years.

The rise has been mostly attributed to regional migration.

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

"It's pretty concerning to have them go into liquidation, but that does happen from time to time with developers," she said.

Mr Harvey said that, despite the liquidation and receivership process, he hoped the project would progress under new ownership.

"Burnett Heads is a rare gem" he said.

"It is my strongest desire to see The Gateway developed into a vibrant community hub that enhances the lifestyle of residents and the community while contributing positively to the region's economy."