Swell restaurant sold in $1m deal

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By Simon Hartley on Tue, 18 Oct 2011

News: Business

Swell Cafe and Bar at St Clair has been sold as part of the receivership process of three companies of local developer Stephen Chittock. Photo: Linda Robertson.

Swell Cafe and Bar in the Esplanade block at St Clair - constructed by local developer Stephen Chittock whose three companies are in receivership - has been sold in a deal worth more than $1 million.

The purchaser is understood to be Thai restaurant chain operator Murray Macarthy, but he did not return calls yesterday.

A decade ago, Mr Macarthy bought and demolished the nearby St Clair dairy, sandwiched between the Metropole and Hydro buildings within the Esplanade block, but the section has since lain bare.

When spoken to in March, Mr Macarthy was operating 12 Thai restaurants and had no plans to sell the vacant St Clair section.

After being bought out in March of his share of the construction of the new St Clair Beach Resort boutique hotel in the Esplanade block, Mr Chittock next put his remaining property assets in the block up for sale in June.

In early August, Mr Chittock placed his companies in voluntary administration, as part of an attempt to attract new equity investors, but nothing transpired.

However, amid reports his liabilities stood at $5 million against assets of $5 million, Mr Chittock's refinancing options began to unravel.

South Canterbury Finance's receivers were identified as the largest creditor, owed $1.5 million, and the receivers exercised their right to place his companies - White Island Investments, White Island Properties and St Clair Village Hotels - in receivership. The voluntary administrators withdrew from proceedings last week.

Mr Chittock's properties for sale have a combined value of $4.4 million and cover a total 2739sq m footprint, made up of the seven-unit Esplanade Motels and Apartments complex, Swell restaurant and three private residences. One of the houses sold for about $400,000 recently.

Mr Chittock had previously driven an Esplanade rezoning change to allow small scale commercial outlets. He was understood to have paid about $1.3 million for the Swell house, which cost a further $400,000 to redevelop into the restaurant.

Insolvency Management Ltd of Dunedin is overseeing receivership of the three companies.

When contacted yesterday, about where the proceeds of the more than $1 million Swell sale and $400,000 house would go, Iain Nellies said the money would be distributed to secured creditors, such as the mortgage holder and secured business creditors. The receivers' first report is not due to be released until next month.

Colliers International has been marketing Mr Chittock's Esplanade property assets.

Contacted yesterday, Stephen Cairns, of Colliers in Dunedin, said there were separate offers on the residential house beside Swell and also another in Bedford St, while the real estate company was "in talks with several parties" over a possible sale of the motel block.

From the early 2000s, companies of Mr Chittock's purchased or held interests in up to nine of 16 properties (five commercial and 11 residential) within the Esplanade block.

After redeveloping the 12-apartment Majestic Mansions block in Bedford St, he sold the complex in March 2009 for an undisclosed sum.

simon.hartley@odt.co.nz

Developer sells share in hotel

http://www.odt.co.nz/news/business/154066/developer-sells-share-hotel

St Clair site still vacant 10 years on

There are no immediate development plans for the only vacant commercial section in the Esplanade block at St Clair - after almost 10 years of remaining derelict.

31st March 2011 ODT article - St Clair site still vacant 10 years on

Sea Wall under Scrutiny Again

Excellent article making the Cover and page 3 of the D Scene this week.

Local surfer Mark Stevenson shines the light on the ongoing issue of poor maintenance and work practices over the St Clair Sea Wall.

I believe the responce by the DCC to defer any 'work or maintenance' until a report is back over erosion at Middle Beach (due to be finalised by the end of 2012) is too long to wait to address simple issues of maintenance and public safety. When in fact there is already an independant "St Clair Seawall Peer Review" published by OCEL consulatnts in February 2006. This covers failures of the sea Wall since its construction, its structural capacity, failure of function, solutions and responses to the public and a city councillor. Why wasn't anything heeded from that review?

Waiting to address issues this way is incompetent. This is exactly what the DCC did with the Sand Sausages adjacent to the Sea wall. They put off doing any maintenance work on them as they became exposed, although it was allowed in the consent conditions. To ensure they "be maintained in a state of operational repair to ensure their effectiveness without the need to apply for additional consents". Instead they did nothing and opted to wait for a potentially lengthy public consultation process over sand mining at Tomahawk.
In the mean time, the sand sausages were completely exposed over time, contributing to increased erosion events right along the dune area to middle beach and St Kilda in 2007.
It was only the 'sabotage' of these sand sausages that allowed them to do the necessary work to bring the due system back in to some kind of equilibrium.
see related post here: phoam.blogspot.com/sand sausage deterioration over 18months

I seriously hope that the DCC will take action sooner, now that the public has been again informed, thanks Mark.

If you are interested please check out related posts on Sea Wall Issues, The failing steps and Ramp here: phoam.blogspot.com/search/label/Sea Wall Steps & Sand

Majestic Mansions SOLD

see related post
http://phoam.blogspot.com/2009/08/majestic-mansions-for-sale.html

The reason I've taken control of the land out here is to get the best possible outcome for the city.. so it remains a destination for visitors and the people of Dunedin City

.. if they can get a park ..

Majestic Mansions for sale

ODT on Fri, 7 Aug 2009 By Simon Hartley Link to full ODT Article

The landmark 89-year-old Majestic Mansions apartment block is for sale in the first phase of a proposed accommodation and commercial development costing up to $9 million on the Esplanade in St Clair.

Dunedin developer Stephen Chittock, who owns Majestic Mansions, said:

the sale would help fund the building of up to 20 apartments and four retail units on a 1000sq m section now occupied by the Esplanade Motel and a house.

"The existing space is well under-utilised. The key is to retain the area as a people place... with retail such as a bakery, gallery or a jewellery shop offering an additional interest to visiting the beach," Mr Chittock said.

In October 2006, the Esplanade block was rezoned from residential 1 to local activity 2, which allows for small-scale businesses, retail shops, apartments and restaurants, the maximum building height being retained at 11m.Any proposed development compliant with the zoning does not need to be publicly notified.The motels would continue to operate through the summer and then be closed, Mr Chittock said.

Demolition of the motel block and adjacent house could begin by mid-2010.

Above plan updated 9th August, thanks to comment #1

The wraps are off

... and the flashback to the 70's is complete :0)

Hotel nearing completion

A few views

One photo of St Clair, with a closeup of the same photo, showing the almost finished St Clair Resort.

St Clair Beach Resort Progress

Photos taken Easter weekend 2009


Above The Esplanade

St Clair Beach Resort

Progress on the most recent Esplanade development. Since these photos were taken a few weeks ago, the wooden framing has started on the roof.

St Clair Beach Resort website
And an article that was in the ODT a few months back.

Quiet As

Above: St Clair day after boxing day, heaps of sand, less people around than I thought. But thats what I love about Dunedin over christmas and new year, everyone leaves and its always very quiet. below left: Third storey going up on the Hotel.

Rising Tall

The hotel on the corner of The Esplanade and Beach St, rising tall.


Above left: a month or so ago, right from above the salt water pool.
Below, Swell Cafe, coated in glass, close to finished.

Prefab panels Popping Up

The Motel is slowly growing, with concrete prefab panels being slotted in strategically like a house of cards.

Below, a little taste of the finished product.

The old white house next to the Esplanade Apartments was recently sold, and is being gutted out and converted into a cafe.
Developer is Stephen Chittock.. Pic to left was taken off the ODT website Source article here: on Fri, 1 Aug 2008.

"Development of the fourth of six potential licensed premises at the St Clair Esplanade is under way, with an estimated $400,000 conversion of a $1.3 million house into a bar and cafe making good progress.

The modest raised beachfront home, owned for decades by the Thomas family, was recently purchased for $1.3 million. Chittock has in recent years purchased nine of the 11 residential properties within the Esplanade block and owns the beachfront motels and Mansions apartment block. It will have seating for 80 indoors, 30 in a courtyard and 20 on a deck with a conservatory area in front of the existing facade. To be named Swell Cafe. "

Swell Cafe on the Esplanade

Source: LINK ODT
St Clair cafe scene set to swell, By Simon Hartley on Fri, 1 Aug 2008

Development of the fourth of six potential licensed premises at the St Clair Esplanade is under way, with an estimated $400,000 conversion of a $1.3 million house into a bar and cafe making good progress.

The modest raised beachfront home, owned for decades by the Thomas family, was recently purchased for $1.3 million.

All but its front facade has been demolished for a bar and restaurant development which will eventually seat up to 130 patrons.

Local developer Stephen Chittock has in recent years purchased nine of the 11 residential properties within the Esplanade block and owns the beachfront motels and Mansions apartment block.

Mr Chittock is also in a joint venture development with Calder Stewart and the construction of a 26-room hotel at the southern end of St Clair Esplanade, estimated to be worth $8 million to $9 million by the time it opens in April next year, is well under way.

Tentatively named Swell Cafe, it will be operated by the Chittock family and should be open by October.It will have seating for 80 indoors, 30 in a courtyard and 20 on a deck with a conservatory area in front of the existing facade."Where else are you right there, with views like this of the surf and beach only metres away," Mr Chittock said.

He believes tourism trends indicate more domestic and Australian visitors and St Clair, with its proliferation of bars and restaurants, as well as a spa business, is developing well to capture and share that market."We want to see the [Esplanade] block live, and not tied up with flash apartments only for the wealthiest," Mr Chittock said yesterday.

Current licensed premises within the Esplanade block are the Salt bar, Starfish and Esplanade, with a long-standing proposal by a Dunedin restaurateur to build on a vacant block and a bar in Mr Chittock's hotel development set to add to the list.He said while there were some competing businesses, the wider Esplanade block was developing as a social hub, not only for the community but for visitors to the suburb.

St Clair Hotel Update

Rain RAIN go away!
Another overdue update on the construction of the Chittock Empires' Hotel on the corner of The Esplanade and Bedford Street.
Two below, back in April/May in the days when the sun shone, and the ground was dry.

Below: The the 6th of June, great progress.


Above, the 18th June, precast panels to encase the lift shaft.
Below, the 10th of July

Hotel taking form

A foggy morning before work.



Above.. a local beachie