Massey University's 10ha Hokowhitu campus is being sold by international tender and could be redeveloped

Massey University is selling its 10ha Hokowhitu Campus in Palmerston North through an international tender process.

The site includes a mix of office and educational buildings, a marae and sporting facilities.

The existing buildings provide 30,000 square metres of floor space and are currently providing $1.8 million a year in rental income from a variety of tenants, including the Ministry of Defence, Ministry of Education, Otis Elevator Company, Palmerston North Operatic Society and Te Wananga o Aotearoa.

The university currently occupies about 5500 of floor space itself and would be prepared to stay on under a suitable sale and leaseback arrangement with new owners.

However the size and location of the property, which is within one of Palmerston North's most desirable residential districts and sits next to a golf course and the Manawatu River, would lend itself to new residential or commercial development.

Much of the land at the site is currently used as sports fields.

The sales process is being handled by Bayleys Real Estate with tenders closing on May 14.

Bayleys director David Bayley said the property was suitable for an integrated commercial development, possibly with a residential component.

"Hokowhitu campus offers the entrepreneurial investor an outstanding opportunity to purchase a substantial property holding which provides significant rental income and development potential," he said.

Massey is staying in Palmerston North but consolidating its operations at its Turitea campus.

Our free Property email newsletter brings you all the stories about residential and commercial property and the forces that move these huge markets. Sign up here.

To subscribe to our Property newsletter, enter your email address here. It's free.