The site at 96-98 Fernhill Rd, covering more than 9000sq m, was placed on the market by NZF Money's receiver KordaMentha with Bayleys Real Estate for sale through mortgagee tender.
The property is about 2km from the Queenstown central business district, opposite the Queenstown Heritage hotel and behind the two-storey Heritage Villas.
Although a covenant limits the use of the site to visitor accommodation, resort planning consultant John Edmonds said he had been successful in amending this covenant for the units which surround the site, which are now able to be used as residential dwellings.
The zoning anticipates the site to be developed into high-density visitor accommodation, such as apartments or terraced or semi-detached housing.
''High density residential subzone A'' came with a special ''rolling height limit'' rule which can allow an owner to build over the permitted 10m restriction as a discretionary activity of the Queenstown Lakes District Council.
The property is being marketed by Bayleys Queenstown commercial and industrial agents David Gubb and Dave Fea.
Mr Gubb, said yesterday there had been ''a good level of inquiry'' about the property, most of it from Queenstown itself. The tender closes on June 12.
