Arcadia Station, on the shores of Diamond Lake near Glenorchy, was used as a location for Sir Peter Jackson's The Hobbit: The Desolation of Smaug. Photo: Nick Gregory / RE/MAX QueenstownArcadia Station, on the shores of Diamond Lake near Glenorchy, was used as a location for Sir Peter Jackson’s The Hobbit: The Desolation of Smaug. Photo: Nick Gregory / RE/MAX Queenstown

Ian McKellen, who played Gandalf, once described the station as "heaven on Earth". Image / FileIan McKellen, who played Gandalf, once described the station as “heaven on Earth”. Image / File

Owner Tim Edney confirmed all livestock were sold at auction on March 31, a move he said was necessary to meet the demands of operating a high-use filming location. Photo / Peter de GraafOwner Tim Edney confirmed all livestock were sold at auction on March 31, a move he said was necessary to meet the demands of operating a high-use filming location. Photo / Peter de Graaf

The property includes a stately 1905-built homestead with 11 bedrooms, a four-bedroom shepherd’s cottage, a four-stand woolshed, two large hay sheds, and sheep and cattle yards. Photo / FileThe property includes a stately 1905-built homestead with 11 bedrooms, a four-bedroom shepherd’s cottage, a four-stand woolshed, two large hay sheds, and sheep and cattle yards. Photo / File

The station is one of New Zealand's best-known movie locations. Photo / FileThe station is one of New Zealand’s best-known movie locations. Photo / File

Brad Pitt was spotted filming in Queenstown last year. Photo / George HeardBrad Pitt was spotted filming in Queenstown last year. Photo / George Heard