Picture perfect Arcadia Station for sale

One of New Zealand's best known movie locations is up for grabs for a cool $10 million.

The 46ha Arcadia Station in Paradise Valley near Glenorchy has played host to some of Hollywood's biggest blockbusters, as well as television smash Top of the Lake.

About 15 films have been shot at the Southern Lakes beauty spot over the years, including the two Chronicles of Narnia movies, The Lion the Witch and the Wardrobe and Prince Caspian; and Sir Peter Jackson's The Lord of the Rings and The Hobbit trilogies.

The working high country farm was the setting for Beorn's fortress in The Hobbit: The Desolation of Smaug. And Sir Ian McKellen, who played Gandalf, described the area as "perhaps my favourite spot".

It is on the shores of Diamond Lake - an hour by road from Queenstown - and with 'Rural Visitor' zoning in place, a new owner could build their dream home, up to nine houses, a visitor resort, or a luxury lodge and health retreat.

The property is owned by farmer Jim Veint, whose parents bought the station in 1951. It has recently been remarketed by realestate.co.nz. The buyer will also have the option to acquire the 110-year-old Arcadia Homestead, a registered heritage building.

"It is a quintessential slice of New Zealand and it is still available for film shoots and television commercials," said agent Nick Gregory.

"We have had interest from a group of investors from Australia and China but the current owner would like to see it bought by a local."