Chairman Mark Quickfall confirmed the tourism operator was speaking to architects and quantity surveyors, but stressed it was too early to say what changes at O’Connells might potentially look like.
"We’ve had some preliminary discussions but it is still a long way down the track to know exactly what we are doing ... whether that is a refurbishment or redevelopment. We are investigating both those options and the tenants are very much aware of that."
Mr Quickfall could not say when work would start, but said 2017 would be "gobbled up" making a decision.
The work has been welcomed, but not all tenants were pleased about the possible changes to the building on the corner of Beach and Camp Sts.
Goldfields Jewellers owner Trond Johansson was worried about having to relocate, having been on the corner for 12 years.
The shop had two entrances and Mr Johansson said it was the perfect location as effectively a stand-alone store.
"I am happy to stay where I am. It’s a great place, I have a streetfront spot and a workshop upstairs. I’m hoping for a refurb[ishment] as I would have to find another place to go."
He described Skyline as a good landlord, and understood the need for change.
Tenant Mike Collins, who recently moved Detour clothing store back into the shopping centre, applauded Skyline.
"O’Connells used to be a focal point for retail back in its day and the building is definitely past its use-by date. I’m really looking forward to hearing and seeing plans of what they are going to do.
"It is a prime central location and it’s great Skyline are investing in the building or in the site. If they are going to bring it up to a modern standard and turn it into a nice looking plaza or whatever, it is only going to be good for Queenstown."
The shopping centre, originally opened in April 1988, is home to businesses, including QT Pharmacy, Smith & Western clothing store, Queenstown Language School, eateries and Skyline’s office.
