Whangārei Town Basin site once pegged for $60m hotel hits the market

The site at 22 Carruth St in Whangārei's Town Basin has plenty of development opportunity, including three road frontages and potential to build up to 21m high.

An empty site in Whangārei’s Town Basin, once pegged as the spot for a $60 million hotel development, is for sale.

The 2600sq m Carruth St site opposite Pak’nSave is being sold as a pivotal CBD location, with road frontage on Carruth, Dent and Reyburn streets.

The land has been used as a carpark since 2018, when Whangārei District Council first leased the site to ease Town Basin parking pressure, including while the Hundertwasser Art Centre was built.

In June, the council decided it could not afford to continue paying the lease, with the carpark closing at the end of August. The lease was previously reported as $174,000 a year, including GST.

In 2021, landowner Sid Anderson backed a $60m six-storey hotel, retail and office mixed-use development on the high-profile site.

The development never eventuated and the land was listed for sale in 2022 but did not sell at that time.

The land is promoted as vacant with no leases, ready for immediate development or land banking, by Bayleys salespeople Nigel Ingham and Daniel Sloper.

Possibilities for the site include a landmark apartment, office or mixed-use complex, a hotel, or a flagship outlet for a restaurant chain or petrol station, thanks to its drive-through potential.

A guide price has not been listed but the 2024 council valuation was $2.7m.

Ingham said the property is a “beacon of opportunity”.

“In short, the Carruth St site offers the scale, profile, accessibility and zoning flexibility to create something special and unlock maximum returns from a key Town Basin location.”

Sloper said mixed-use zoning under Whangārei’s district plan supported intensive development and a range of activities including accommodation, food outlets, aged care or educational facilities.

Buildings are allowed up to 16m high as of right, and up to 21m high for projects including housing, enabling developers to capture city and sea views, he said.

The property is being marketed for sale by deadline private treaty, closing on Wednesday, October 29, unless sold prior.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.