- The former City Garden Lodge site is for sale in Parnell, valued at $7.5m.
- The Chatlys say they cannot afford to develop the 1480sqm block.
- Neighbours reported years of tenant-related fear after lodge was destroyed in a 2024 fire.
The site of a notorious boarding house whose residents allegedly terrorised neighbours has been listed for sale, two years after the property was destroyed in a fire.
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The 1480sqm vacant block sits in one of Auckland’s wealthiest neighbourhoods, surrounded by multimillion-dollar mansions, and is heading to auction with an RV of $7.5 million.
Vendors Seema and Suresh Chatly, who have owned several high-profile boarding houses in Auckland, said they were not in a financial position to develop the land at 25 St Georges Bay Road, in Parnell, and had decided to sell it.
Seema told OneRoof it was “a beautiful piece of land with lots of potential in a premium location”.
25 St Georges Bay Road was the site of City Bay Lodge, which was destroyed in a fire in 2024. Photo / Frank Mair
She said she was unsure if the couple had received an insurance payout over the fire that destroyed their boarding house, City Garden Lodge, in 2024.
“My husband is dealing with that,” she said.
Barfoot & Thompson listing agent Munish Seth told OneRoof that such a large piece of land was unique for the area.
“It’s a dream come true situation [for developers] in the centre of Auckland in such a prestigious location.”
He said the Terrace House and Apartment Building [THAB] zone meant that an apartment block or terraced houses could be built on the site, adding that concept plans were available to potential purchasers.
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The Chatlys originally operated the property as a backpackers hostel. However, it became an emergency housing provider during the Covid pandemic. Suresh told Newstalk ZB in 2024 that they switched to emergency housing to keep afloat. “It was more of a survival to pay the mortgage.”
However, the lodge and another Chatly-owned boarding house at 60 St Georges Bay Road caused upset in the suburb. In April 2024, shortly after the fire, three neighbours told RNZ they had endured years of “hell and fear” as a result of poor behaviour by some of the tenants.
St Georges Bay Road is also the site of the huge sinkhole that plagued Parnell and caused waste to overflow into the Waitematā Harbour.
Since the 2024 fire, the Chatlys have been shrinking their property portfolio. Last year, they sold 60 St Georges Bay Road for $1.978m, almost $800,000 below its RV, and the Freemans Backpackers Lodge on Wellington Street, in Freemans Bay, for $2.1m – $1m below its RV.
Seema and Suresh Chatly sold their lodge on Wellington Street, in Freemans Bay, last year for just over $2m. Photo / Supplied
The couple are trying to sell the former Ueneku Lodge at 217 Ponsonby Road. Photo / Supplied
According to a report by BusinessDesk in 2024, the Chatly Group, received $40.5m in grants for providing emergency accommodation across nine properties they owned. Seema told OneRoof this week that the couple’s businesses no longer provide emergency housing.
She said they were carrying out renovations at 217 Ponsonby Road, which they formerly ran as Uenuku Lodge. The property has an RV of just over $4m and is for sale by negotiation.
Seth, who is also the listing agent for 217 Ponsonby Road, said the couple had received a $5.2m offer for the former lodge. However, the sale had fallen through because the buyer was unable to sell a property in Sydney to fund the deal.
- 25 St Georges Bay Road, Parnell, Auckland, goes to auction on September 9
