Call made to demolish BNZ building

Almost two years after it was closed because of earthquake damage, the former BNZ building on Wellington’s waterfront is coming down.

Owners CentrePort confirmed yesterday that the company had finally struck a $170 million deal with insurers, clearing the way for what was known as BNZ Harbour Quays to be demolished.

Completed in 2009, the 21,000 square metre Harbour Quays building has sat empty since the November 2016 Kaiko¯ura earthquake. It once had a rateable value of $95m.

CentrePort, which also suffered extensive damage to its port infrastructure, has confirmed it will not be building another commercial property on the site.

‘‘We plan to demolish the former BNZ building, based on the advice we

have received as to its condition,’’ CentrePort chief executive Derek Nind said.

‘‘We need a larger footprint as we work through our regeneration plans and reconfigure our land and berth capability,’’ Nind said.

The building has been dogged by problems. Even as it was being built, critics claimed the building was ultimately likely to draw workers away from the central business direct.

Property developer Ian Cassels welcomed the news, saying the building was ‘‘an adventure that weakened the CBD only to then add to the insurance costs of the commercial ratepayers who bear part of the burden of Wellington’s earthquake losses’’.

Current and former BNZ staff have, generally, said they were pleased to be out of the building, both because of its relatively remote location and concerns over repeated earthquake damage.

One former BNZ employee said yesterday that the building ‘‘was in the middle of nowhere’’, on the wrong side of a busy road some distance from the city.

When it was opened it was hailed as ‘‘state-of-the-art’’ for its ability to cope in earthquakes as well as environmental design.

But it was also closed for months in 2013, after the Seddon earthquake caused significant damage internally, with considerable water damage.

Photos from inside the building suggested that if the earthquake happened during work hours, staff would have been in danger. However BNZ returned to the building.

‘‘I guess it felt a bit strange going back in [after the closure],’’ a staff

member said. ‘‘But we had faith in the assessment that it felt safe.’’

Even after the 2016 earthquake, BNZ insisted for about 18 months that it intended to send staff back in. A day after the quake, a spokeswoman said staff were expected to return quickly.

After the nearby Statistics House partially collapsed, government statistician Liz MacPherson made a strong public statement on video, demanding answers.

Less than a week after the quake, BNZ said it could be months before the building was reoccupied.

Almost 18 months later, in March, BNZ announced it would not return to the building, immediately removing branding from the building.

No-one from BNZ or CentrePort had ever commented substantively on the degree of impact of the 2016 earthquake, until

yesterday when CentrePort confirmed it was ‘‘badly damaged’’.

BNZ did not provide any comment on the news of the building coming down, referring questions about reentry procedures to CentrePort.

The deal covers problems at a number of its buildings, including Statistics House, which partially collapsed in the Kaiko¯ura earthquake.

It also covers damage to Customhouse, the only one of its major commercial buildings tenanted, as well as Shed 39,

‘‘and other sundry buildings’’.

‘‘We need a larger footprint as we work through our regeneration plans.’’

CentrePort chief executive Derek Nind