Developer sought for ex-IRD building
The Crown wants to sell the former Inland Revenue office building in Christchurch’s east frame to a property developer.
Taxpayers bought the eightstorey building and the small Cashel Chambers building alongside it for $32 million in 2013.
As part its agreement to build the east frame apartments and townhouses, developer Fletcher Living had an option to buy the Inland Revenue building from the Crown. It did not take up that option by a December deadline.
The site remains designated for use as part of the east frame anchor rebuild project. It is one of few buildings in the east frame to escape demolition. Crown company Otakaro says it wants to hear from developers interested in buying
"We want to see the building turned into something that would help make the east frame attractive." Keith Beal, Otakaro
the building and turning it into something complementary to the east frame.
Otakaro strategy and property opportunities general manager Keith Beal said rather than selling to the highest bidder, they wanted something that delivered good commercial returns and supported the Crown’s regeneration objectives.
Beal said a potential buyer must have ‘‘the experience, finances and vision to purchase and redevelop the building’’. It also wants to hear from potential tenants to pass their information on to would-be buyers.
He expected the building would suit a mix of uses, including accommodation, hospitality, retail, arts, education or collaborative office space. It should be an amenity for east frame residents and a drawcard for the central city, and could be completed in stages, he said.
‘‘We want to see the building turned into something that would help make the east frame attractive. We want it to be a driver and an enabler for the east frame, rather then the other way around.’’
Developers need to express interest by April 28, after which Otakaro may hold discussions with some or launch a formal proposal process.
Otakaro intends that by the time a developer has planned, bought and completed a project, there will be hundreds of new homes in the east frame.
They now had ‘‘confidence and certainty’’ about the timing of new homes going into the east frame, he said. Fletcher Living began siteworks for the first homes this month, with an expected completion date of May next year. Fletcher will take ownership of the next two blocks of land in the middle of this year.
The building was constructed by previous owner the Rapaki Property Group for tenant Inland Revenue in 2007 and has 1.6 hectares of floor space. It suffered moderate damage in the Christchurch earthquakes.