Landlord Skyline Enterprises reveals a new indoor entertainment centre’s being built, from later this year, in its landmark Queenstown building, O’Connells.

Chief operating officer Danny Luke says the new anchor tenant will bring “renewed energy” to the complex while complementing the retail, hospitality and tourism offerings in the wider precinct.

“The project reflects our ongoing investment in Queenstown and our commitment to creating memorable, year-round entertainment experiences that add value to both the local community and visitors.”

Full details will be revealed later, but a project team’s already progressing detailed designs.

Day-to-day operations for the basement Eatspace food hall and four ground-floor shops facing Camp and Beach Sts won’t be affected during construction, Luke says.

In ’21, Skyline let two floors — 1800 square metres — of O’Connells’ under-construction refurb to international retailer DFS Group for an upmarket T Galleria store.

It opened in ’22, but a year ago it pulled pin after deciding to end its operations in New Zealand and Australia.

DFS Group paid Skyline $7.5 million for surrendering its original 15-year lease, while as a result the building suffered a 19% drop in valuation.

Meanwhile, the new entertainment centre will have a phased opening next year.

— PHILIP CHANDLER