Burning car may hold clues to Dunedin murder

File photo / NZ Herald

A car found burning in the western suburbs of Dunedin may hold clues to the "gruesome" murder of an unemployed man, police say.

Three men, aged 17, 25 and 47, were arrested on Saturday afternoon and jointly charged with the murder of 23-year-old James Mathew Ellis.

His body was found at Blueskin Bay Estuary, north of Dunedin, by two people out walking on Friday morning.

A post mortem examination showed he had suffered blunt force trauma injuries to his head, hands and arms.

Police investigating the case have appealed for information on the arson of a green Mazda Capella - registration number BCL448 - which was found on fire at 44 Kaikorai Valley Road around 5.10am on Saturday.

Detective Senior Sergeant Kallum Croudis said the car had been parked at the property where the 47-year-old and 17-year-old were arrested.

It was owned and being driven by one of the murder accused in the hours before the arson, he said.

"We are interested in anyone who may have been travelling Kaikorai Valley Road later on Friday night through to Saturday morning who may have seen people acting suspiciously in the vicinity of the Squash Club or Bowl Line.

"We are particularly keen to hear from taxi drivers and people who drive delivery vehicles who were travelling through Kaikorai Valley Road late on Friday and early Saturday morning.

"It may be that someone has seen something or offered somebody a lift from this area," he said.

The three murder accused appeared in Dunedin District Court today.

Mr Croudis earlier said police may have found a weapon used in the murder.

Police and Christchurch ESR were yesterday examining three properties - two in Dunedin and one in Oamaru - as well as two vehicles of interest, a green Mazda 626 and a white Mazda 626, he said.

One of the vehicles, the white Mazda with registration PK4943, was stolen from Dunedin on Thursday.

The armed offenders squad (AOS) was used to secure a house in Gilmerton Street, Corstorphine, where the 47-year-old and 17-year-old were found and arrested.

Neighbours said the two arrested by the AOS were father and son.

Mr Croudis said police still had a number of people to speak to but the investigation was progressing quickly.

"We are still trying to locate witnesses who attended a gathering at an Oamaru address overnight on Thursday and early Friday morning. Both Mr Ellis and the three men facing charges appear to have been at the address," he said.

"The result in bringing charges is a testament to the excellent collaboration and cooperation between police staff in Gore, Oamaru, Dunedin and Christchurch, as well as urgency around speaking to potential witnesses."

- NZ HERALD STAFF, NZPA