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The 962sq m triangular-shaped site is owned by Straits International Ltd, and was the site of a service station for about 80 years.
The Dunedin City Council has given resource consent for the company to construct four residential units in a two-storey building (block 1) and two residential units in a three-storey building (block 2), thereby creating 22 habitable rooms.
Construction is expected to be completed next year.