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An artist’s impression of the renovated Inland Revenue building on the corner of Cashel and Madras streets in central Christchurch.
Seven years after buying Christchurch’s largest office building to save it from demolition, Crown sold it to a property developer.
Huadu International Management Group purchased the former Inland Revenue building and plans to remodel it as a medical training and research facility specializing in dementia care.
Shops and catering establishments are projected on the ground floor.
The eight-story, 16,000-square-meter building is on the corner of Cashel and Madras streets. Built in 2007, it has been left damaged and empty since the earthquakes.
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The building is surrounded by the housing development of the east frame and in front of the new stadium of the city.
The sale comes three months after developer Patrick Fontein declined to accept his option to purchase the building.
Fontein was chosen by Crown’s rebuilding company Ōtākaro Ltd as their preferred developer for the site in 2017, but was unable to put their plan for an education, research and technology center called The Lighthouse into action.
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The former Inland Revenue building will now be converted into a health care and research facility.
Fontein described the Lighthouse project as a “job machine,” but it required public sector support that he could not get.
Ōtākaro confirmed that the sale to Huadu took place on Thursday, but did not reveal the price at Huadu’s request. The building requires structural reinforcement and was sold as is.
The Crown purchased the site to the previous owner Simon Henry for $ 32 million in 2013. The sale includes the building of low-rise Cashel Chambers and adjacent parking building overlooking Bedford Row.
Huadu, led by businessman Jianping Wang, previously built the Manawa Research Building at the Christchurch Health Precinct. He is also behind plans for an international language school in the former Christchurch court building, and is building the luxurious Cranmer Gardens apartments across from Cranmer Square.
It has also made an offer to develop another Crown-owned property, the former Oxford Clinic site on the health compound, as a medical clinic with accommodation.
Wang’s Huadu group of companies includes Huadu International Construction Group Co, based in Beijing, China.
Ōtākaro CEO John Bridgman said the Inland Revenue redevelopment would be “another important step forward for the CBD.”
The sale delivered “both regenerative and commercial positive results,” and the restored parking facility would be helpful to East Frame residents, he said.
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Otakaro CEO John Bridgman says the sale will be a step forward for downtown Christchurch.
Wang said the new facility would become “a Center of Excellence of national importance” in the field of dementia, catering to future demand that “is expected to grow exponentially.”
The development would also allow retail, hospitality and community health businesses to serve East Frame residents, he said.
The east frame is intended to eventually contain over 900 new homes, built by Fletcher Living as part of a Crown-led rebuilding project.
Huadu Developments expects to begin remodel of the former Inland Revenue building in early 2021.
John Kirk-Anderson / Stuff
The old Hacienda building in 2012.
