Nelson investor buys prime Invercargill city property
Nelson-based commercial property owner Gaire Thompson has bought a prime piece of real estate in central Invercargill.
Thompson’s company, Pascoe Properties, has reached a sale agreement with the Southern Institute of Technology to take over 25 Don St in Invercargill.
It houses the SIT Arcade, as well as the adjoining former SIT downtown campus site. The Southern Institute of Technology has owned 25 Don St since 2001.
It has been home to various SIT courses over the years, including film, music, art, design and fashion. The sale went unconditional yesterday, with Pascoe Properties to take possession on March 31.
The 3031sqm land area is viewed as a key piece to central Invercargill’s puzzle.
It links Invercargill Central’s new city block development in Esk St and the Invercargill Licensing Trust’s new Langlands Hotel development.
Thompson does not have any plans for a major redevelopment of the building and site.
He instead will try to fill vacant space in the former downtown campus with office tenants.
In the arcade, there are various businesses operating, including the Flight Centre, Bonsai sushi restaurant, Fashionail Studio, and the Southland Chamber of Commerce.
Thompson’s Pascoe Properties company already owns a significant amount of commercial real estate in Invercargill. It includes the old CUE TV building in Esk St which can be accessed from the SIT Arcade.
He acknowledged it was a challenge filling office space in the current climate but said the 25 Don St building did have some pluses to it, which he hoped might help attract tenants.
‘‘It has got 30 car parks in the basement which probably helps us rent office space.’’
The building became surplus to SIT’s requirements when it removed its operations from the downtown campus.
It came after the polytechnic developed, in and around the old St John’s Anglican Church in Invercargill, a new creative arts centre in Tay St.
The new development is named Te Rau o Te Huia.
In 2019, the then SIT chief executive Penny Simmonds floated the idea of developing the downtown campus site into student accommodation. However, that did not eventuate.
When asked what would happen with any profits from the sale, acting SIT chief executive Daryl Haggerty said: ‘‘SIT is part of the Te Pukenga network for which cash reserves will be managed locally and collectively to ensure fiscal responsibility.’’
Meanwhile, Thompson has reached out to the Invercargill City Council suggesting it should look at the old Farmers department store building in Dee St as a site for the city’s museum.
Thompson owns the building which is now largely vacant after Farmers shifted into the new Invercargill Central city block development.
He believed it would be a more cost-effective option for the city rather than developing a new building at Queens Park when building costs were high.
Mayor Nobby Clark said the old Farmers building had been considered as an option.
However, it was decided a new building that would cater for the next 50-plus years was the wise option. He added that through the consultation process the public had made it clear they wanted the museum to be at Queens Park.
Thompson said he had been working with multiple potential retail tenants for the vacant Dee St building but had not yet officially locked anyone in as they worked through potential floor plans.