The ODT understands Marprop recently bought The Forge, a three-level, mixed-use commercial building which fronts Athol, Shotover and Camp Sts.
It has a CV of $33.95 million and it is understood settlement is next month.
Completed in 2004, the building has not been modified since.
It is Marprop’s second property interest in Queenstown, the company having previously bought a mixed-use building, home to Patagonia clothing store, which fronts Beach and Shotover Sts.
All its other interests are in Australia.
According to Marprop’s website, part of its "investment thesis" is to target "undervalued, underperforming assets", acquire them at a discount and enhance their value.
At present, commercial tenants are housed on the first and second floors of The Forge, while New Zealand artist Ivan Clarke’s gallery and Torpedo7 are on the ground floor.
Allied Media last year reported the latter would close in February — it will continue to have a presence at Remarkables Park — while Clarke, whose gallery sells both his paintings and "Lonely Dog" artworks, also plans to exit the building in favour of his Bob’s Cove home gallery.
Marprop’s resource consent application, which is being vetted by the Queenstown Lakes District Council, said retail was still planned on the ground floor, along with an "all-day cafe/wine bar" in a smaller space fronting Athol St that at present is used as a bike shop.
The two floors above would be converted into visitor accommodation, ranging from private bedrooms to four-, six-, eight- and 10-bed shared dorms.
Thirteen rooms, in different configurations, are planned for the first floor, along with communal bathrooms and an entry/self check-in/lounge, and another 17 rooms and communal bathrooms on the second floor.
Each floor would have capacity for a total of 132 people.
The company is also seeking to breach acoustic standards, because installing additional internal sound insulation would not result in a "meaningful improvement", and mobility standards, because no mobility parking, or parking spaces, are proposed.
Marprop is seeking for the application to be processed non-notified.
