Following a failed hotel development, more than three tenders have been received for the mortgagee sale of Dunedin's nine-storey former chief post office, including "several" tenders from interested property developers.
On the other side of the Exchange area, six tenders, all from Otago and Southland, were received for the separate mortgagee sale of the 125-year-old former BNZ bank, on the corner of Princes and Rattray Sts, on Wednesday.
South Canterbury Finance (SFC) is owed more than $7.5 million over the project to turn the chief post office into the Hilton Dunedin by Auckland-based developer Dan McEwan of the McEwan Group, who has since been adjudged bankrupt over other debts.
SCF took charge of the building in December and tenders closed last week on the mortgagee sale.
Several Dunedin investors lost thousands of dollars in the project.
SCF managing director Lachie McLeod yesterday confirmed some details of the tender process, saying more than three tenders from around New Zealand, including some from property developers, had been received by the company.
However, for reasons of commercial sensitivity, he could give no further details.
Mr McLeod was asked if any of the tenders were "viable", to cover SCF's $7.5 million debt.
"We think so, but we have a lot of conditions to work through," he said.
SCF's board had meet recently and discussed the tenders, but between the Easter break and other commitments at the end of the financial year, it was likely to be six weeks before a final decision was made, he said.
Principal lender for the BNZ bank development, the embattled Hanover Finance, has called in a loan against Auckland developer Mike McGurk, who said earlier last month he planned to refinance and continue with his plans for the $8 million to $10 million hotel development.
Mike Elford, of Edinburgh Realty, confirmed the six tenders for the BNZ building yesterday.
The tenders have since been sent unopened to Hanover Finance.
The building has a capital value of $1.5 million, a price it has fetched several times.
