The Queenstown Lakes District Council has confirmed the purchase of a prominent lifestyle block in Ladies Mile for more than $15 million.
Photo: New Zealand Sotheby’s International Realty
The council first signalled the purchase in February and this afternoon confirmed it after councillors agreed to the deal behind closed doors last month.
The purchase of the 14.6 hectare property at 516 Frankton-Ladies Mile Highway will come at a total cost of $13.78m once GST is claimed on the transaction.
The settlement comes after the Walker family put it on the market earlier this year.
It boasts a rating valuation of $6.41m and has a five bedroom 440 square metre home, a swimming pool and more than 400 mature sweet chestnut trees.
Mayor Jim Boult lauded the purchase.
"As the largest population centre in the wider Wakatipu, the need for some form of community and recreation hub in the Lake Hayes Estate-Shotover Country area is obvious," he said.
"Opportunities like this to purchase large areas of flat land are rare and this 14-hectare site has the potential to offer a number of valuable community uses."
"Potential future use of the land could include community facilities such as sports fields and open parks, partial use for a transport hub or park and ride facility. Additionally the site offers potential education uses such as a new primary or high school," the council's statement confirming the purchase said.
Council chief executive Mike Theelen said council staff completed due diligence before recommending elected councillors agree to the purchase.
"The purchase is in line with a number of council strategies and policies, and we have been able to secure the property at a net cost of $13.78m. This has been funded through loan funding," Mr Theelen said.
"The final use of the property is yet to be determined but will, in part, address the need for additional facilities identified in QLDC strategies for community facilities, parks and open spaces, and regional recreation and sports facilities," the statement said.
The sale marked the first time the property was offered to the market for 30 years and it was offered by international deadline private treaty.