The Waikato Institute of Technology will seek expressions of interest in the redevelopment of a large chunk of Ward St in the new year.

A set of mostly early 20th century buildings from 145 to 179 Ward St were demolished between late last year and April 2018.

Wintec property manager Graeme Ward said the institution would go to the market through an open tender process with the aim of creating an attractive development.

"We're looking to sell the site, we want to see a quality development. We have already received a lot of interest both local and outside the Waikato. We're looking for concepts which will really enhance the area.

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"It's a good flat site and close to the transport centre. We're looking at its mixed-use potential, a mix of commercial and accommodation. We want something that enlivens the city and relates well to Ward St."

Although most of the site was occupied by Wintec until recently, just over half of the 4136sqm area is on Hamilton City Council leasehold land.

Hamilton City Council strategic property unit manager Nicolas Wells said leasehold was an impediment to development and the council had a long-term policy of selling down municipal endowment property where it could.

Municipal endowment funds had been established more than 100 years ago by central government as a means of creating a revenue stream for local government.

However, over the years the idea outlived its original purpose as rising property values outpaced lease income - resulting in a poor yield, Wells said.

"The leases are for 21 years so we only get market level rentals for a very short period of time.

"If we can encourage people to buy us out we can re-invest the money at least for what can be got from the banks. Every time we sell endowment land it is better for the city."

The city was down to its last three endowment properties with the remainder being residential, he said.

Ward and Wells hoped the end result would join a number of other modern and attractive developments in the area including the triangular PWC centre on the corner of Ward and Angelsea Sts and the recently opened Genesis Centre on the old Foodtown Supermarket site - both formerly HCC lease property.

The Ward St site is directly across the road from the Hamilton Central Shopping Centre, including Kmart Plaza which is in the early stages of redevelopment by Stark Property to take new tenants, Waikato Regional Council and Opus International. Kmart will occupy the western end of the building.