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The future of a key heritage site in Milton remains uncertain following an unexpected liquidation sale.
The former Bruce Woollen Mill in Milton has been sold following the liquidation of Miltown Properties Ltd, the company owned by Dunedin businessman Ezra Eini.
After listing the property in April, it was relisted as a liquidation sale several weeks later after the collapse of his company.
In an initial liquidator's report, Simon Dalton, of Gerry Rea Partners, said Miltown Properties owed more than $600,000 to creditors, including Nova Energy, the Inland Revenue Department, Clutha District Council, Otago Regional Council and Leli Coluccio.
The 8.7ha site, which sits on the edge of town, had generated $185,000 a year in rental income.
Other than confirming the property has been sold, real estate agency Kelleher could not comment, due to the liquidation.
In May, Mr Eini, who bought the Bruce Woollen Mill complex in Milton in 2012, told the Otago Daily Times heritage restrictions had stalled his redevelopment plans, prompting him to sell on to ‘‘new blood’’.
He began demolishing a derelict 19th-century flour mill on the site several years ago, but was halted by Heritage New Zealand Pouhere Taonga as the building fell under heritage protection, due to its age.
The nearby woollen mill was the birthplace of Swanndri founder William Broome’s early designs, and was key to the district’s economy for several decades, employing up to 400 people in its heyday.
It closed in 1999.
At the time of listing, Mr Eini was optimistic about the prospects of a sale, telling the ODT that, at 73, he was ready to pass the baton on to younger entrepreneurs.
He said Milton was undergoing significant redevelopment under the Clutha District Council.
‘‘We have a new pool going in, an inland port, subdivisions and a streetscape upgrade under way.
‘‘The site could be redeveloped to take advantage of that growth.’’
richard.davison@alliedmedia.co.nz