RSA building sells for tidy sum (+video)

Pukeroa Oruawhata Trust are the new owners of the former RSA building and chairman Malcolm Short says the opportunities to utilise it are vast.

The building that housed the Rotorua RSA for decades was sold at auction yesterday to Pukeroa Oruawhata Holdings Limited, a subsidiary company of the trust, for just under $1 million.

The auction was held at the BNZ building and was attended by a large crowd.

Mr Short went up against one other bidder with the auction pausing at $675,000 to negotiate an amended bid.

Mr Short re-entered the auction with a bid of $980,000 and successfully secured the building.

Afterwards he told the Rotorua Daily Post he was pleased with the outcome and said there were "a number of opportunities to put the building to good use".

"We will be looking for tenants to move into the building. We are thinking it could be office space or house a restaurant but at this stage nothing has been decided.

"It is in a strategic location with key tourist attractions only a stone's throw away so there are plenty of opportunities for us to put the building to good use."

The Rotorua RSA made the decision to put the Haupapa St building on the market in June after experiencing ongoing financial pressure.

Rotorua Bayleys Realty commercial salesman Mark Rendell said the trust got a good deal on the property.

"In the lead-up to the auction there were two or three interested parties looking at the building but as the auction neared their interest waned.

"With the sale of the Zen building, which is set to be turned into a hotel, there is demand in the city for office space. The building also has a license for gaming machines so there are a lot of options as to what the building could be used for.

"I think Mr Short has made a wise decision purchasing this premises."

Rotorua RSA president William McDonald said the association was very happy with the sale.