The Safari Group, a New Zealand owned and operated family business, have an unconditional contract to purchase the former Post Office building. Plans for the site include restoring the former glory of the original post office with an 86 room Wyndham branded hotel and health spa, along with retail opportunities, a conference/meeting facility, and a gym.
Property Brokers played a key role in the sale of the iconic building.
Managing Director Guy Mordaunt says, "We're incredibly proud to have been involved in such an exciting opportunity for the city. Safari Group are a great organisation with a proven track record of development. Watching an iconic Palmy landmark restored to its full glory will be awesome. We love the Manawatu and want to see it thrive, so this level of investment in the province is great to see."
Safari Group Director Damien Taylor says they're very excited about bringing a world-class hotel brand to the city centre location.
"Having had dealings with a number of heritage buildings across the country, we know what it takes to restore the post office to its former splendour, along with delivering a much-needed asset that the community can be proud of. Palmerston North has long been on our radar, and the right opportunity has presented itself. The hard work will continue, ensuring that key stakeholders are aligned, and the consents and permits are obtained before construction starts with a goal of the last quarter of next year."
Acting Chief Executive Chris Dyhrberg says council staff and elected members have been working with the current and new owners to help encourage a sale to bring this important heritage building back to life.
"The former Post Office Building is an icon in our city, and one we know is very much treasured by our residents. Over the past few years, our residents have shared their concerns about the state of this building, and our staff and some of our politicians have been working tirelessly to encourage a sale. We know our residents will be thrilled with this news and will be excited to see what Safari Group has in store."
Chief Planning Officer David Murphy says Safari Group has taken a refreshing and positive approach to working with the council in advance of any consent work.
"Safari Group has been very respectful of the heritage values of building and sought specialist advice early to inform their plans. That's great to see and should provide great comfort to our residents. This development will play a key role in our City Centre Transformation and creating our vision for a city centre where people want to live, work and play any time of the day. We'll be working closely with Safari Group about our work in the vicinity of the building, including our City Centre streets project and our Urban Bus terminal work."
Chief Executive of the Central Economic Development Agency (CEDA), Jerry Shearman, says this will significantly lift the capacity of the region's overall ability to host, and bid for, events and conferences – something which is much needed.
"Our central location has held us in good stead over the years as a great destination for conferences and events, and this additional accommodation capacity is very welcome. In the year to July 2022, Palmerston North's occupancy rate sate at 51.5%, well about the national rate of 34.7%, while the Manawatu region (city and district combined) sat at 48.9%, so as a region, we're performing consistently well even in our current pandemic environment. This puts us in the top three regions nationally. We know the region and visitor industry will welcome this announcement too, the limited accommodation capacity in our region has come through strongly in our recent workshops and engagements with key stakeholders in the hospitality, activities, and accommodation sectors, so to secure this will significantly unlock our region's future opportunities in the events and visitor economy space."
