"Under the Unitary Plan the property is zoned Business-City Centre. This enables an intensive development to take place, making it a desirable site for residential and commercial developers.
"The value of the site fundamentally lies with its future development potential. The land has sat vacant through two apartment cycles, albeit I understand a resource consent remains in place for a three-stage residential apartment development, which includes 257 car parks," he said.
Earlier this year, the borrower's loan facility fell into distress with an overseas lender, Kellow said.
"NZMS is now forced to sell the land to allow recycling of the capital into property projects with genuine momentum," he said.
NZMS is Auckland's largest non-bank property financer. In the past year alone, it has financed the completion of over 500 apartments, 75 townhouse units, 700 residential sections along with its normal bridging loans and land banking for $150 million of development land, Kellow said.
"We are very active in the lending market and in my 20-year lending career we have never before had to complete a mortgagee sale," Kellow said.
Steve King of Ray White who has marketed Saba said he could not discuss whether the project would go ahead and referred inquiries to Ray White principal Phil Horrobin.
Two-bedroom units in Saba are being advertised for $732,500.
Saba's website says the land is one of the last remaining undeveloped freehold sites in the Viaduct, "close to everything the city and fringe have to offer - easy public transport, picturesque parks, the beautiful Westhaven Marina and Waitemata Harbour and Auckland's best dining, shopping and entertainment".
Property records show the site is partly owned by interests associated with Mohsen Haghi of rug business House of Haghi.
Haghi's businesses have been involved with developing other Auckland properties, including the 105-unit apartment block The Landings at Quay Park.
The phone number to make an inquiry about a Saba apartment was not being answered this afternoon.
