Reports the Mercure Hotel in the Exchange precinct, formerly the historic Wains Hotel in Princes St, might expand to a neighbouring property to the south have been scotched by hotel owners, CP Group.
The Auckland-based private investment company owns several of the buildings in the triangular Princes St-Manse St-High St block.
There had been reports CP planned to expand the hotel into the former Paterson building, but director Charles Pandey said the company had no expansion plans at present.
About 13 months ago Hellaby Meats bought adjoining properties in Princes St near the Oval with plans to establish a fruit, vegetable and meat retail outlet during the following 18 to 24 months.
The buildings, bought for an undisclosed sum, include the Southern Sports Bar and Grill and the adjacent former Auto Court premises, with Hellaby's hoping at the time premises could be open by 2012.
Raeward Fresh managing director Brent Thomas said the plans for redevelopment were "on hold", while Raeward concentrated on its Christchurch operations.
"We had one store close due to an earthquake and are now concentrating on three remaining stores. Also, we have just redeveloped our flagship store at Harewood that was in progress before the earthquake," Mr Thomas said.
The 66-year-old family-owned company, which operates five Raeward Fresh outlets, including one in Dunedin, gained non- notified resource consent to operate as a fruit, vegetable and meat processor and retailer from the Dunedin City Council in December 2009.
The operation is permitted to operate seven days a week, 8.30am to 6pm, and employ up to 20 staff. Plans for redevelopment then included demolition of the Southern Sports Bar and Grill to make way for parking.
In 2007, CP Group received Dunedin City Council resource consent to demolish two buildings it owns on the corner of Manse and High Sts and build a six-storey, 65-room hotel extension thereMr Pandey said the economic recession had put those plans on hold but the consent could be activated if the company chose to do that. He did not know when, or if, the project would proceed.
While Auto Court has moved from its premises beside the Southern hotel in the Exchange, Southern Wide Realty, the main tenant of the CP-owned Paterson building on the corner of Princes and Manse Sts immediately to the south of the Mercure, relocated to South Dunedin last Monday.
John Faulkes, managing director and co-owner of several Southern Wide offices including Dunedin, said he had given CP Group notice after finding premises on Macandrew Rd, near Andersons Bay Rd. The new site was high profile, on a single level and had good parking for staff and customers, he said.
"I've been looking around for something suitable for 18 months and this is it."
