Group bails on $900m city plan
An international consortium has failed to deliver plans to develop the $900 million Peterborough Quarter in central Christchurch, leaving authorities hunting for replacement developers to take on the project.
The private consortium has lost its option to develop the land – on and around the city council’s old convention centre – into a complex of shops, offices, restaurants, apartments, and a hotel.
Council rebuild company Development Christchurch Ltd (DCL) spent two years working with the consortium to try get the project off the ground.
DCL’s work included working with private landowners around the convention centre site, which is between Peterborough, Colombo, Kilmore and Durham streets and opposite the Town Hall.
DCL, run with $3m of ratepayer funding annually, has not identified who it has been working with.
However, it is known to be Peterborough Quarter Ltd, a consortium headed up by Christchurch apartment developer Richmond Paynter and Sydneybased subdivision developer Fred Rahme. The company has Chinese and Australian investors understood to include a construction and investment arm of the Chinese Government.
The master-planned complex was thought to have been inspired by Rhubarb Lane, an Auckland development with apartments and commercial spaces that never went ahead.
Both Paynter and Rahme are overseas and were unable to be contacted for comment.
Industry sources said the consortium spent a large amount of time and money on the project, but failed to apply for resource consent by a late September deadline and its option on the land has now lapsed. Since being selected as preferred developers, the consortium’s project escalated in value from $500m to $900m.
The convention centre site has been vacant since the earthquake-damaged building was demolished in 2012.
DCL chief executive Rob Hall said in a statement that ‘‘key milestones were unable to be met and the decision was made to end the deal’’.
DCL now wants expressions of interest from other developers.
‘‘While the decision to end the deal is disappointing, we know there are other parties interested in the site,’’ Hall said.
‘‘This opens up the site to other interested parties and DCL is working through a new process.’’
He said the most important thing now was making sure work
progressed on a development for this ‘‘key central city site’’.
‘‘This is a prime site, just north of the Town Hall. The goal has always been to create a thriving central city community, which could include residences, education facilities, retail, hospitality and a hotel.
‘‘We will continue working with potential investors, as well as other significant landowners in the area, to open up the opportunity and get work under way on a new development that contributes to the city’s goal of attracting more residents to our central city.’’
Fred Rahme was one of the developers behind the Silverstream subdivision in Kaiapoi and founded Guoxin NZ Ltd, a company set up to invest Chinese capital in the Christchurch rebuild.
Paynter originally developed the Est@blishment apartment tower in central Christchurch, and previously pulled out of plans to develop the old Woods Mill site in Addington and to build the Miro luxury residences in Colombo St.
On its website, DCL says the new project for the convention centre site would ‘‘deliver exceptional outcomes for Christchurch’’.
‘‘We envisage that the site will see a comprehensive mixed-use development incorporating residential and apartment living, supported with boutique retail, hospitality and laneways,’’ the website says.
‘‘Its strategic location will see it connect to the Town Hall, the former Crowne Plaza site as well as linking to future developments northward. Design and masterplanning of the site are well under way’’.