Investor spokesman Martin Dillon said the two-storey, 4000sq m Village Green complex would be ‘‘the next logical step'' in the town's development.
Construction at the corner of Gordon Rd and Glasgow St could begin in October.
Mr Dillon was director of a company that made proposals for a $9.5 million 7000sq m development in Gordon Rd and Church St, also called Village Green, in 1995.
‘‘Once the plans got in to the media . . . one property owner held out for ridiculous money.
But this time we've secured the property before going public. We are not going to be caught again,'' he said.
Since the 1990s, projected housing and population growth had increased in the area, and this would make retail development more viable, he said.
‘‘We have the residential, industrial and now we need the retail development. It's the next logical step and stage in Mosgiel becoming a vibrant town.
Dunedin city is unique in that it has one shopping area. This development won't threaten retail in George St but complement the shopping experience,'' he said.
Blackstone Consultancy (of which Mr Dillon is a director) would supervise the project. The consultancy company had yet to apply for resource consent and was working with the Dunedin City Council on parking issues. Plans for the development had been drawn up, he said.
‘‘The only issue might be closing off the remainder of Glasgow St to traffic to create a town square.''
The company would act on behalf of three investors who bought the majority of buildings affected by the development three years ago, and bought the BNZ building (opposite) last year.
Mr Dillon was looking for national retail tenants and had contacted three groups in the past 24 hours who had ‘‘indicated interested''.
‘‘I think we'll have more tenants than space,'' he said.
Mr Dillon has been involved in commercial real estate in Dunedin city for about 18 years. In addition to the Village Green development (in the 1990s), he was agent and spokesman for developer DTZ, which shelved plans to build a $15 million South Dunedin shopping mall in 2002.
