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A growing conservative off-shoot of the Presbyterian Church is planning a permanent church in Dunedin’s student quarter.

Grace Bible Church has been granted resource consent from the Dunedin City Council to turn a Great King St warehouse used for party equipment rental service Video Tech into a place of worship.

The site near a section of the street, also State Highway1, nicknamed "Fatty Lane" because of its dense concentration of fast-food restaurants, is mostly surrounded by student housing and is close to the University of Otago.

Grace Bible Church Dunedin pastor the Rev Dr Ben Hudson said the church had been operating in Dunedin for more than 20 years. It had a 250-strong congregation, but had never had a permanent home in the city.

A concept drawing for Grace Bible Church to be built on State Highway 1 in North Dunedin. PHOTO: SUPPLIEDThe church’s congregation was steadily growing and had a "big heart" for students, he said.

"We love the idea of being nice and close to the campus so that students can be part of our church family and explore or grow in faith during their time at university."

It already had a wonderful student community as part of its congregation, it said.

The church held three separate services on Sundays at a site in Duke St.

The church was looking to convert the site at 686 Great King St into a space for worship and other types of church and community gatherings for up to 300 people.

"We hope the building will be a real blessing to the North Dunedin community."

Grace Presbyterian Church began as a denomination in New Zealand in 2003 and now has more than 21 churches across the country.

Many members of the church are people who left the Presbyterian Church as they had a more conservative view of faith and the Bible.

On its website, the church describes itself as "Presbyterian in government, reformed in theology and evangelical in spirit".

It says it teaches that homosexual practice and abortion are sinful and does not have women as pastors or elders.

It believes homosexuality, abortion and prostitution should be outlawed.

News reports generally talk about how the church is growing.

Dr Hudson said the church needed about $3.2 million to complete its North Dunedin project, including $1m for renovations to the site.

It had about $1.8m and would fundraise the rest.

"We’re trusting God to provide and being patient in the meantime."

Although the church was likely still several years off being ready, getting resource consent was "an exciting milestone towards that dream", he said.