In a separate tendering process in the Exchange area, due diligence is under way by two New Zealand developers on the former chief post office, which South Canterbury Finance is selling to recoup a more than $7.5 million debt from failed hotel developer the McEwan Group.
South Canterbury Finance managing director Lachie McLeod was contacted yesterday and said it would be about six weeks until a decision was made.
That decision would be based on "the right developer for Dunedin" and the value of the offer, but he could release no other details as due diligence was still under way, and would continue, "likely for some time".
The six tenders, all from Otago and Southland, were received early in April for the mortgagee sale of the former BNZ bank, on the corner of Princes and Rattray Sts.
Embattled Hanover Finance is the second-mortgage holder over the building and had called in a loan against Auckland developer Mike McGurk, who said earlier in the year he planned to refinance and continue with his plans for the $8 million-$10 million BNZ hotel development.
Mike Elford, of Edinburgh Realty, yesterday said "all six tenders were declined" and the three buildings were open for tender again, on behalf of first-mortgage holder, Crown Money Corporation Ltd, of Auckland.
Should the sale of the former BNZ and buildings 201 and 205 Princes St be successful, Crown would have first call on the funds realised, with the remainder going to Hanover Finance, Mr Elford said.
Hanover Finance, owned by Eric Watson and Mark Hotchin, is calling in many loans or pressing for the close of sale and purchase agreements, including several in Otago, under its restructuring plan to repay $462 million owed to investors in the next five years, while continuing as a property lending business.
The BNZ building, on a 978sq m site on two titles, has a capital value of $1.5 million, a price fetched several times in the past.
The BNZ was refurbished in 2002, for use by the High Court and Dunedin District Court while the Stuart St court building was being refurbished, but has otherwise been vacant since 1999, which followed the cancellation of plans for a proposed $4 million, 11-apartment project by an overseas owner.
