The Post

Basin site tipped for new Chinese embassy compound

- HAMISH McNICOL

FOODSTUFFS has sold a block of land close to Government House, understood to be the site for a new Chinese embassy compound.

The supermarke­t chain said yesterday it had unconditio­nally sold its Rugby St site, across the road from the Basin Reserve, for an undisclose­d sum.

In August, it was reported the Chinese Government was planning to buy the just over one hectare site, in a $16 million deal.

Embassy spokesman Gang Chen confirmed at the time it was looking for new premises, but did not provide any further informatio­n. He could not be reached for comment yesterday, but it is understood the Chinese Government is the buyer.

Foodstuffs bought the former Boys and Girls Institute site, bounded by Rugby, Tasman, Douglas and Belfast streets, and cleared most of the buildings five years ago to make way for a new store, but the developmen­t stalled.

Chinese officials had been looking for more than a year for a suitable site.

Their interest in Rugby St was confirmed when a group of Chinese officials were seen visiting the site by members of Mt Cook Mobilise, a residents’ group formed in 2007 to oppose Foodstuffs’ plans to put a Pak ’n Save supermarke­t on the property.

It is believed the Chinese Government wanted about 2 hectares for an embassy compound.

The Foodstuffs property had been identified as the only large enough site close to the centre of Wellington.

Foodstuffs North Island property developmen­t general manager Angela Bull said the terms of the agreement were confidenti­al.

‘‘Following a recent strategic review of the North Island property portfolio it was determined that the Rugby St property was surplus to our future requiremen­ts and we have therefore sold the property,’’ she said.

The Chinese have outgrown the Glenmore St embassy building they have occupied since relations were first establishe­d with New Zealand in the 1970s.

 ?? Photo: CAMERON BURNELL/ FAIRFAX NZ ?? Embassy expansion: A $16 million block of land formerly earmarked as a supermarke­t developmen­t site is understood to have been bought for a new Chinese embassy.
Photo: CAMERON BURNELL/ FAIRFAX NZ Embassy expansion: A $16 million block of land formerly earmarked as a supermarke­t developmen­t site is understood to have been bought for a new Chinese embassy.

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