Work on a subdivision at Wingatui has begun in earnest with a line of macrocarpa trees bordering the Mosgiel Pony Club being cut down.
The Otago Racing Club was granted resource consent for an 11-section subdivision after appealing to the Environment Court in 2014, after the consent was declined by the Dunedin City Council.
Otago Racing Club president Stephen Grant said preparations were under way to get the land ready for sale.
"We got a subdivision consent for the purpose of selling the land and are readying it for that purpose,'' he said.
Building a training centre was part of the club's strategic plan, Mr Grant said.
"The resource consent was obtained on the basis the funds would be used to support the club and make that centre.''
Mr Grant said the club was "actively involved in getting it ready for sale''.
"The land is for sale and will be sold.''
Mosgiel Pony Club president Vanessa Smart said the club was on the same grounds as always and there was "no effect at all'' on its operations.
The pony club had been "informed of the process all along'', Ms Smart said.