Property snapshot

Back in Local's hands.

The long-derelict former rest-home site on Montpellier Street is set for a major transformation after Dunedin developer Blue Sky Property confirmed it has purchased the prominent corner property.

The building, which has sat vacant for more than 15 years and has been the subject of repeated fires, break-ins and neighbour complaints, will soon be demolished to make the area safe.

Blue Sky Property director Lyndon Fairbairn said the company takes ownership in the coming months, and securing and clearing the site would be the first priority.

“For a long time this building has been a real worry for the neighbourhood. Kids have been able to get inside, there have been fires, and the whole place has just deteriorated,” he said.

“Our focus is to demolish the structure quickly so the area is safe again. That’s the number one job.”

Fairbairn said the acquisition brings the high-profile site “back in locals’ hands”, and the company is already looking ahead to its future potential.

“It’s a terrific site — elevated, sunny, flanked by parks and the Town Belt, and with some really nice city and harbour views,” he said.

“Once the demolition and clean-up is done, we’re excited to begin designing a collection of modern three-bedroom homes that really make the most of the location.”

While detailed plans are yet to be developed, Fairbairn said the aim is to produce high-quality housing that fits the character of the area and lifts the overall feel of the streetscape.

“We love working on special sites like this. It’s been an eyesore for a long time, and we’re looking forward to turning it into something Dunedin can be proud of.”

The project will join Blue Sky Property’s growing portfolio of boutique residential developments across the city.