Prime Dunedin CBD hotel development opportunity

5:21 PM Friday November 15, 2019 True Commercial

The property at 193 Moray Place, Dunedin. Photo / Supplied

Prime Dunedin CBD hotel development opportunity
A new opportunity to develop a high-quality hotel on one of the few large blocks of land left in Dunedin’s CBD is being presented to the market by Colliers International.
The Dunedin City Council-owned car park site on the corner of Moray Place and Filleul Street has long been earmarked for a five-star, inner-city hotel and mixed-use development.
“Council’s long-held position is that this site represents a prime development opportunity, so we’re looking for someone to develop the site and build a high-quality hotel complex,” says Enterprise Dunedin Director, John Christie.
“This site is a prime location in the inner city and this development would be a valuable asset for the city.”
The Dunedin City Council has enlisted two of Otago’s most experienced property and tourism asset brokers to seek registrations of interest from developers.
Dean Collins, Director of Colliers Dunedin, has extensive local development land sales experience, while Queenstown-based colleague Steve McIsaac specialises in brokerage and consulting on tourism assets and development sites.
Colliers International is running an international marketing campaign with expressions of interest to be lodged by Friday 6 December 2019.
Collins says the 6,480sq m site is prominently positioned within Dunedin’s civic heart.
“This site provides an extremely rare opportunity to establish a high-quality inner-city hotel complex, potentially with a mix of uses to complement Dunedin’s revitalised, vibrant and growing city centre.
“Seldom do development opportunities in such a prime CBD position come available to the market, so this represents a truly unique development opportunity.”
Collins says the property sits in a prominent position at 193 Moray Place, with frontages to Filleul Street and York Place.
“The site is opposite the Dunedin Town Hall and close to The Octagon, which is considered the heart of Dunedin’s CBD, as well as the Dunedin Art Gallery, the historic Railway Station, Toitū Early Settlers Museum and the Dunedin Chinese Garden.
“The site is also a short distance from Otago University, Forsyth Barr Stadium and the Dunedin Hospital.
“The immediate area benefits from plenty of restaurants, cafes, boutique retailers, public transport links and much more.”
McIsaac says the site currently comprises an on-grade public car park with 185 parking spaces.
“There is huge potential at this site. The council envisages a new hotel complex with street level retail, contributing to the city’s vibrancy, as well as providing public car parking to replace the existing spaces.
“There is also the potential for a residential component or multiple hotels within the complex.”
McIsaac says Dunedin is a vibrant city with a strong culture and idyllic natural beauty.
“Located on the southeast coast of the South Island, Dunedin is the gateway to the Otago region as well as its main centre.
“The city is known as the ‘Edinburgh of the South’ due to its strong Scottish heritage, with many fine examples of Victorian and Edwardian architecture including Larnach Castle and various churches.
“Dunedin is also home to the internationally recognised University of Otago, which hosts New Zealand’s principal medical school.
“Tertiary students make up 20 per cent of the city’s roughly 130,000 residents. This has an enormous influence on the city’s vibrancy and helps to sustain entertainment and cultural options well beyond the city’s size.
“Dunedin is also well known for its natural beauty and eco-tourism. Nestled in tree-clad hills at the head of a stunning harbour, it has excellent swimming and surfing beaches.
“The wider Otago region is renowned for its stunning scenery, which includes mountains vistas, dramatic rivers through vast plains, and remote beaches.”
Interested parties are being asked to submit concept designs and details of their development experience.
Developers who have previously been interested in the site have been advised and can also take part in this process.
The council’s preference is for a single party to acquire the whole site with vacant possession as a fee simple estate.
However, it may also consider proposals to acquire part of the site, or other forms of tenure such as a ground lease.
Covenants may be included to ensure the site is not land banked or used for anything other than a hotel complex.
The council will consider registrations of interest and decide how to proceed, likely in early 2020, after which registrants will be advised of the next steps.