Hastings District Council has sold its former nursery next to Cornwall Park to Hawke's Bay building company Horvath Homes, which also built the council's Best Homes showhome in Havelock North this year.
The council would not say how much it had sold the property on 511 Fitzroy Ave for but its capital value was listed at $460,000.
Horvath Homes will develop the site into a housing subdivision of 12 lots. The existing house will stay and be renovated to complement the development.
The council controlled organisation, Hastings District Properties Limited, negotiated the deal and the subdivision will showcase quality medium density housing incorporating strong sustainability initiatives.
The council decided in April this year that the land used for the nursery was no longer needed and it was transferred to its property company which had a business case for a housing development.