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Gary Michael Wilson (46) and Nick Graham Miles (23) appeared in the Dunedin District Court this afternoon in relation to the incident on Friday.
Wilson is charged with threatening to do grievous bodily harm to the victim and the pair are jointly charged with kidnapping him and being unlawfully being in a building.
A police spokeswoman said the incident began on Friday evening in central Dunedin.
``This has begun with an altercation between the two offenders and the victim [and] a verbal altercation regarding the return on some property,'' she said.
``The victim has refused.
``After him refusing with what they were wanting they have driven this male to Flagstaff and made demands of him there.''
The victim was then released by the pair ``at the top of Flagstaff'', she said.
``The victim has not been physically injured and been able to walk to an area with cellphone reception and called police.''
Police later arrested the pair.
The trio were known to each other, the spokeswoman said.
Wilson and Miles were remanded in custody by consent following their appearance in court today.
The pair are likely to apply for bail when they next appear.