A large chunk of land has just entered the running in Dunedin’s contentious hotel market, as a block of almost 8000sqm is for sale on the edge of the central business district, near the Forsyth Barr stadium.
The industrially zoned land, bordered by Anzac Ave and Harrow St, is on five titles but for sale as one holding, the owners being Dunedin businessmen Tony Johnston and Iain Mackay, directors of Miller Studios Property Ltd.
Recent proposed hotel development in Dunedin has been stymied in the face of sometimes fierce opposition.
The 7913sqm block is zoned industrial 2 under Dunedin City Council’s district plan with potential that classification could be amended to a residential 3 zoning.
Bayleys Dunedin director Robin Hyndman said the block was "strategically located" between Dunedin’s CBD and the stadium, and flanked by the city’s hospitality, university and polytechnic precincts.
"The sites were worth more as one combined lot than they were individually . . . there’s very few landholdings of this scale available so close to the city centre," Mr Hyndman said.
The five sites have a combined capital value of more than $3.84million, according to council records.
Mr Hyndman said given the site was within walking distance of the city centre and stadium, it would be "the ideal location" for a much-needed four or five-star hotel.
"The very flexible zoning rules recognise that the land may have numerous uses," he said.
It could continue in its industrial use, which at present generates annual revenue of more than $400,000, be developed into a more intensive and modern accommodation facility, such as halls of residence for the university or polytechnic, or as a nurses’ home.
Mr Hyndman said the multiple and varied tenancy schedule would deliver "sizeable holding income" while the necessary council consents were obtained for any development, which would be attractive for developers.
Mr Hyndman said any interest in a hotel development was most likely to come from overseas or Auckland-based investors, while a halls of residence style conversion could be an attractive option for Dunedin-based investors.
"Because of the size of this landholding, a commercial development would allow for the option of building a business park-type complex of several blocks or towers," he said.
