Demolition plans for Invercargill's city centre are back on track following a hearing at the High Court in Christchurch today.

Demolition was due to commence on 6 January, but was halted after Nelson based property manager Gaire Thompson filed an interim injunction in the High Court at Invercargill in December. The case was heard in the High Court in Christchurch today.

A statement released by Invercargill Central Limited this evening confirms demolition is now set to begin.

"The Invercargill inner-city redevelopment is a visionary project that will bring life and vitality to the CBD, by replacing a full inner city block with a new centre comprising retail, food and beverage, offices, apartments and more. Invercargill Central Limited director Scott O’Donnell is thrilled with the outcome and is excited to start demolition." the statement says,

Kaumātua Michael Skerrett, of Te Runanga o Waihopai, blessed the site on January 6 where demolition work will begin. Demolition will start from the current car park space in the centre of the block and contractors will work towards Kelvin Street clearing the east end of the block. Buildings in the block which won't be demolished include the Kelvin Hotel, Reading Cinemas and Bank of New South Wales building. Two building facades on Esk Street will also be retained.