Cinema gets $27m for quake-damaged complex

Cinema giant Reading International will rebuild on its empty car park lot in central Wellington after pocketing a $27.5 million insurance payout for quake damage.

The United States company revealed in March that its Courtenay Central complex suffered torn movie screens, water and projector damage, and fallen ceiling tiles as a result of the Kaikoura earthquake in November.

In addition, the neighbouring car park was deemed to be at imminent risk of collapse, and was demolished.

Yesterday, Reading said it received a US$20m ($27.5m) settlement for property and business interruption losses resulting from the magnitude-7.8 earthquake.

The payout would fund the construction of a ‘‘new state-of-the-art parking structure’’, the company said in a statement.

The new car park was expected to increase the amount of rentable space at the centre and improve traffic flows, Reading said.

Reading Australia and New Zealand real estate managing director Matthew Bourke said the earthquake had delayed the timing of previous redevelopment plans for Courtenay Central, but had also offered an opportunity to ‘‘reimagine the property’’ and look at other ways to improve the centre.

Countdown supermarket remained committed to the site, Bourke said.

In March, Reading Australia managing director Wayne Smith said the quake had delayed development of the long-deferred Countdown supermarket project, but said ‘‘all parties remain committed’’ to it. Initially, Countdown owner Progressive Enterprises planned to build a 3344 square metre store on vacant land at the rear of the centre on Wakefield St.

However, those plans were delayed when seismic issues were identified at the cinemas’ car park following the 2013 Seddon earthquake.

The project was also pushed back after Countdown asked for a redesign.

The November quake caused widespread damage throughout Wellington, and the upper South Island.

Three buildings in Wellington have been demolished as a result of damage, with two others earmarked for demolition before the end of the year.

Wellington City Council told Radio NZ last week up to 20 Wellington buildings could be demolished due to quake damage.