When the development was first mooted, it was proposed the project on the Frankton flats would accommodate 10,000 people and include a shopping centre complex.
It was expected to be worth $2 billion on completion. Now, Bayleys Real Estate has put up the "For Sale" sign.
Mr Henderson told the Otago Daily Times he believed the project was a victim of timing.
"It has been bound up in planning issues for six years with us and another 13 years with the previous owners. This has cost millions in direct planning costs and holding costs."
That always put a huge toll on any project, but the economic events of the past 12 months had meant providing further funding to get the project going had been a tough task, he said.
Asked if the mortgagee sale was the end of his involvement with Five Mile, Mr Henderson said: "Not at all."
He had proposals before Hanover Finance now and would continue to work on Five Mile with the finance company.
"I have made commitments to the Queenstown Lakes District Council and the good folk of Queenstown about this project and I will do my level best to meet those."
The project was viable and because of its significance at the entrance to Queenstown, the council, like Mr Henderson, was determined to see it come about, he said.
"I will assist and work at any level on that aspiration. I guess so much depends on just how many years it will take the Queenstown market to rebound. But it will rebound, as it is such a special place."
Mr Henderson and his team were still working on several projects throughout New Zealand.
All were dependent on the market finding some footing and there being, eventually, more liquidity in it.
"We also have a number of completed projects we still run like our very successful Hotel SO, in Christchurch, and the reurbanisation project south of Lichfield, in Christchurch."
His companies had a subdivision in St Arnaud, Nelson, and they were completing three Livingspace Hotels in the South Island.
