A former Marlborough pub that now houses overseas winery workers is set to go under the hammer, with a heady brew of options for future use or redevelopment.

The property in Seddon, 25 kilometres south of Blenheim, was known to locals for 70 years as the Starborough Tavern before sounding its last call for orders in 2016. The tavern rose from the ashes of a fire that burned down the Seddon Hotel in 1940.

The building now serves as accommodation for workers brought to Marlborough’s flourishing wine industry under the Recognised Seasonal Employer Scheme (RSE).

Kurt Lindsay of Bayleys Marlborough said future options included retaining the existing housing facility. Alternatively, new owners could utilise the more than 4,000-square-metre landholding, and position near major vineyards in New Zealand’s top wine region – which make the site ripe for redevelopment with a larger, more comprehensive RSE accommodation complex or alternative activity making use of its State Highway 1 proximity, he said.

The wine industry’s workforce draws heavily on the RSE scheme, which allows horticulture and viticulture businesses to recruit seasonal workers from offshore when there are not enough local workers.

Booming demand has seen the annual cap on RSE workers soar from 5,000 at the scheme’s inception in 2007, to 20,750 for 2024/25.

An existing short-term lease to a viticultural services company housing workers at the Seddon site will give new owners a holding income while they progress future options.

Net income details are available to potential buyers upon signing a confidentiality agreement.

The freehold land and buildings at 23 Goulter Street, Seddon, Marlborough, are being marketed for sale by Lindsay and colleague Jake Arnesen of Bayleys Marlborough.

The property will go under the hammer at an auction on Thursday 10 July.

The approximately 520 square metres of buildings are underpinned by a fee simple landholding of some 4,048 square metres.

“Previously the Starborough Tavern, this prominent address in the heart of Seddon blends historical character with current income and strong future potential,” said Lindsay.

“Surrounded by vineyards and development-ready, it presents a strategic investment or business opportunity in Marlborough’s growth corridor.”

Currently tenanted until November 2025, the existing nine-bedroom accommodation facility is compliant with healthy homes standards, supporting ongoing use to house workers.

Various commercial uses are permitted by way of Business 2 zoning under the Marlborough Environment Plan.

Arnesen said the site was handy to town amenities including a supermarket, 24/7 fuel station and primary school.

Future activities would be supported by its strategic top-of-the-south location.

“With excellent access to State Highway 1 and proximity to Marlborough’s wine industry, the Kaikoura Coast tourist route, and Lake Grassmere salt works, this property will be of interest to investors, developers, or business owners seeking a versatile and well-located asset.

“The Awatere Valley, centred around Seddon, is a significant viticultural hub known for its large vineyards and unique terroir, contributing to Marlborough’s status as a world-renowned wine producer.

“State Highway 1 runs through the town, placing it on the main freight and transport route through to Blenheim and Picton with its inter-island ferry services to the north, as well as southward to Kaikoura and Christchurch,” Arnesen said.