Large office development in Christchurch affected by quake

Thursday 31st March 2011

A large office building on Colombo Street in Christchurch got the thumbs up from the Overseas Investment Office (OIO) days after the magnitude 6.3 earthquake in February but the future of the project is now unclear.

The building at 772 Colombo Street was to be developed by Carter Group of Christchurch and the Bank of New Zealand (BNZ) was to be the major tenant.

On February 28, the OIO approved the $46 million deal between BNZ and Andrew Centre Ltd, which is 50 percent owned by Philip Carter and 50 percent owned by Michael Ryan. This is the value of the 24-year lease for 3400sq m of office space plus car parks.

The proposed development design incorporated a portion of a heritage facade and although this facade was not part of the space BNZ proposed to occupy its inclusion triggered OIO approval.

BNZ is owned by National Australia Bank Ltd.

"Recent events necessitate both parties to reconsider whether or not they proceed with the original concept, an alternative to it, or at all. It will be some months before any decision is reached," BNZ said in a statement to NZPA.

NZPA

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