The Queensland Government has given MSF Sugar Limited the go-ahead to proceed with a $500 million hotel, marina and resort and residential development at Maryborough north of Brisbane.

The ASX-listed MSF Sugar, formerly Maryborough Sugar Factory, said it would seek a joint venture partner to undertake the waterfront project on the banks of the Mary River at Granville on the outskirts of Maryborough.

MSF is now awaiting approval of a Development Application currently with the Fraser Coast Regional Council, and is hoping to secure the approval within 12 months.

The project, known as Mary Harbour, has been on the drawing board for the last four years and was awaiting the completion of the Queensland Government’s Wide Bay Burnett Regional Plan.

The gazetting of the regional plan permits the 179-hectare Mary River site to be rezoned for urban use. The area has been included in Maryborough’s Urban Footprint within the Regional Plan.

MSF CEO Mike Barry said the release of the Regional Plan cleared a major hurdle in the progress of the development, which will ultimately accommodate 1300 new homes, a 300-berth marina and beach-style swimming lagoon.

“This is a significant step in the plans for the re-development of this site into a project that will become an outstanding asset for Maryborough and the surrounding community,” said Mr Barry.

“We are very keen to proceed with the project and we will now focus our attention on securing the appropriate partners while it is under consideration by council.”

The project will have the capacity to become home to approximately 3500 people. Funds from the development will be reinvested back into the company’s core sugar business.