The former Montecillo war veterans' home in Dunedin could be demolished, but before a final decision is made, the site will undergo an archaeological assessment.
The site has been bought by Morclarke Developments, which took possession a few days ago.
Director Lloyd Morshuis said the building would probably be demolished, but he was working closely with the New Zealand Historic Places Trust because the site could have archaeological significance due to pre-1900 occupation.
''We can't just pull it down,'' he said. The 1904 building, which became a home for veterans in 1918, had no protection orders.
An archaeological assessment would be carried out to determine the site's significance.
''If there is something here, then we'll treat it accordingly.''
Excavators were on site clearing and tidying the overgrown garden.
''There are some absolutely stunning trees in here that are just getting choked with vines and everything else.''
Mr Morshuis did not know what would be developed on the site if the building was demolished, but a rest-home development was possible. The 1.3ha Eglinton Rd site was bought in 2004 by Fox and Hammer Investment Ltd, which sold the complex to Morclarke Developments. The site has been unoccupied for several years.
Otago Southland Historic Places Trust area manager Owen Graham said he was working with the company to ensure there was a process in place to deal with any archaeological findings.
The Dunedin City Council has granted consent for the demolition.
