24 February 27, 2015 / The National Business Review

Special – Report Dreaming A New City

Canterbury’s earthquakes help shape the nation

Chris Hutching

The fourth anniversary of Christchurch’s earthquake is more than a local event. It has shaped the nation – from the initial wave of emotional and financial support from Kiwis in every town and city, to the explosion of job opportunities, revaluation of property, reshaping of insurance, and rebuilding by corporations. Residents are still coping with the momentous events of February 22, 2011. Designs for a permanent memorial to the 185 people who were killed are being evaluated. Like much else about the government-controlled elements of the rebuild it’s taking a long time, with the memorial construction expected perhaps by 2016. Most of those who died were busy at their desks doing what they were sup- posed to be doing, supporting their families, getting ahead on education cours- es, shopping, clinching financial deals, travelling on a bus, or crushed by rocks falling from a cliff. It was shocking to see injured and distressed people, and heartening to wit- ness heroism of ordinary people. The immediate aftermath was a bit like camping. The novelty wore off after days without running water, showers, loos, electricity. Neighbours worked together to clear the mountains of liquefaction silt, helped by farmers who brought tractors and trucks to town. Things slowly improved although the 14,000 shakes took another year to settle down, with the last two biggest ones in June and December 2011. Four years later, homeowners continue to battle EQC and insurers. At the same time, a wave of rebuild workers has flocked to the city, creating a cosmopolitan atmosphere. Engineers, assessors, architects fly in from around the country. High-vis clothed tradies in the local bars gabble in Geordie or Irish accents. More sedate hard working gangs of Filipinos occupy houses together, quietly getting off to work in the mornings, sometimes exploited by events and the occasional fly- by-night employer. Much of the city now resembles a construction site, driven by the private sector, with more cranes than Auckland. Parts of the old city centre still look like a rubble wasteland in the Crown- controlled areas ahead of the construction of anchor projects, testament to the land clearance. The razed eastern suburbs also amaze visitors on the 7km drive to the seaside suburb of New Brighton. Thousands of houses are being built to replace them in new subdivisions such as Prestons where dozens if not hundreds of homes are being built at the same time. And rebuilds are well under way with many completed in older city suburbs. The Canterbury Earthquake Recovery Authority might more truthfully have been called a demolition authority. It is still overseeing the last 3000 from more than 8000-odd red-zone homes (about 20,000 homes have been destroyed altogether) and a much smaller number of central city commercial properties yet to go. While the over-arching role of the Crown via CERA was probably necessary, questions remain about its speed in rebuilding Crown anchor projects like a convention centre and other amenities. Whatever the future role of CERA, the commercial renaissance of the central city is a reality as new office towers arise and tenants sign up to lease them. [email protected]

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‘Spectacular’ Saving Real estate plans for CBD but Christchurch’s agencies make hay, red flags waved heritage stone by offer new services stone 26 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY February 27, 2015 / The National Business Review

‘Spectacular’ plans for CBD Holmes Consulting Group but red flags waved Designing Calida Smylie when they are at capacity and only take on projects which they know they can do well. Christchurch’s central business district was almost “To be honest it’s a challenging environment to be annihilated by the earthquakes and four years on working as a professional in, but it’s quite enjoyable an enduring is nowhere near restored. But those close to the because it’s highly stimulating and varying work. I’d mammoth rebuild efforts say while original build time rather be here than Auckland, that’s for sure.” estimates were wildly optimistic, the city is on track to Jade Kirk, director of geotechnical engineers Kirk becoming the most liveable in Australasia. Roberts, says there has been a good run of CBD There are several layers to the redevelopment but projects, but predicts a slowdown. the key projects for precinct developments are all in “There just aren’t enough tenants ready to come legacy the pipeline to be completed over the next 10 years. back into the city, which might be because the According to the Christchurch Chamber of Commerce, infrastructure isn’t all in place yet. And because there is about $10 billion worth of commercial building costs are high, investors are targeting A-grade FORSYTH BARR HOUSE: One of a handful of buildings to be replaced in the central city and most of tenants when these make up about 10% of the market. high rise buildings to survive. It will soon become a We’ve been in Christchurch for nearly projects in our own backyardget the that in the CBD, where about 80% of buildings were “If you don’t have the right tenants, cost structure hotel destroyed. and infrastructure for a building then you can’t get the 60 years, applying our creative design world-leading thinking and technology The CBD may not look like much now, with cranes project off the ground, and that criteria’s the same as excellence to complex structural they deserve. Across Christchurch, dotted around dusty, noisy building sites, before the earthquakes.” engineering projects all over our great New Zealand and the world, Holmes More hotels open as and ornate brick facades still propped up New challenges thrown up by the by red packing crates, but Chamber earthquakes makes it crucial to build city.Now,we’reright at the heart Consulting Group is helping to create of Commerce chief executive Peter durable yet cost-effective structures, of the rebuild, ensuring important an enduring legacy. Townsend is enthusiastic for its which means more innovative operators around the future. thinking such as designing stone “There’s a five to 10 year horizon columns to strengthen liquefiable in terms of getting the central city ground, he says. country enjoy hot back up to scratch, but in the interim it will become a very liveable place as Reality trumps optimism it is rebuilt. We don’t have to wait for every While naysayers may grumble about trading last block to be put into place before it’s a good lengthy building times, Mr Kirk thinks the CBD place to be. What I’ve seen of the designs rebuild is progressing at a reasonably good of the central city are spectacular. We’re pace. “I think the hypothetical pace Chris Hutching getting some great private investment set by the Christchurch Earthquake into our city with very well-designed Recovery Authority and the If hotel operators thought they were busy in December – they were. buildings facing our river.” government a few years back was Visitor arrivals to New Zealand were up 5% to 402,500, compared with Mr Townsend goes as far to say unrealistic. There was just no way 02 December 2013, Statistics New Zealand says. It was the highest ever recorded the earthquakes have been good for we could have met all the demands for any month, with China continuing as the biggest source of growth, with the city as it has allowed the CBD to of what a city needs in such a short be reimagined into something more time with the amount of resources and 39% more arrivals from China than in December 2013. 04 All the main centres have benefited but South Island tourism has enjoyed a liveable. expertise we have in New Zealand.” The commerce chamber’s Mr Townsend bounceback as a result. And, of course, tourists need places to stay. “The total rebuild costs, including cost agrees people were “hopelessly optimistic” A majority of new hotel announcements, if not the majority of rooms, have escalation and betterment, look to be now at which meant the rebuild scale was come from Christchurch in recent months as the city rebuilds capacity follow- $45 billion. We’re going to recreate a city which will be a fantastic proposition underestimated. “It will take a lot ing the 2011 earthquakes. for our people. It will take a bit of longer than we thought, and that is a gateway to tourism attractions throughout the time, but it’s all looking very exciting doesn’t mean we should stand aside South Island. But for a while after the earthquakes there were few choices of already.” and cry into our handkerchiefs, accommodation. Hotels that survived enjoyed their best occupancies for years The rebuild process has often been because we are involved in New but the limited capacity was hampering business and tourism. stymied by litigation, and Christchurch Zealand s biggest ever economic It was only a matter of time before existing hotels added rooms and inner has been divided at times over what building programme. city hotels re-opened after cordons were lifted should happen to damaged icons such “It’s all about opportunity here and 01 03 05 In addition to those already open for business there are several new ones in as the cathedral. But heated debate is the economic indicators are good. We the pipeline. part of the healing process, Mr Townsend are spending $100 million a week every The former is to become the new Crowne Plaza Hotel CBD DEVELOPMENT: says. (From top) Chamber of week rebuilding our city, and today when some internal damage is fixed. “That’s all part of Christchurch, that’s Commerce CEO Peter we’re about 27% of the way through. Forsyth Barr Hse was owned by a group of local investors who have received all part of every community. We like Townsend; Hampton Jones We’re probably not going as fast as an insurance payout and used $45.7 million of the proceeds to buy Waitakere to be involved in litigating everything, CEO James Bunday and some of us would like, but every road Mega Centre in Henderson from NZX-listed Argosy Property. because that’s how we think we claim Kirk Roberts geotechnical I see unblocked, every ditch I see dug, The new owners will convert the 19-storey office tower, overlooking Victoria Christchurch back. But the time comes engineers director Jade every foundation I see laid, are all signs Square, into a 200-room hotel with restaurants and a bar. It will open next year. when you need to put a stake in the Kirk, with one of the Kirk of progress and getting back into the The old five-star 297-room Crowne Plaza Hotel on the other side of Victoria ground and move on.” Roberts buildings below most spectacular and liveable city in Square was demolished in 2012. The replacement will be the third Crowne Australasia.” 06 Plaza in New Zealand for the chain, which is part of the global InterContinental Rebuild gathering speed [email protected] Hotel Group (IHG). but is it sustainable? With five suites, 195 guest rooms, two restaurants, a bar, fitness centre, and Hampton Jones chief executive James Bundy has 08 10 function rooms, the new Crowne Plaza will be aimed at business and leisure noticed activity has gathered speed and there is plenty travellers. of work for building consultants and quantity surveyors. 01 The latest in the continuing renaissance of Christchurch is an announce- His company has been put on the panel for supplier 02 Christ’sCollege ment by Mantra Group that it will manage a 263-room hotel at 165 Cashel St services from the and Ministry 03 Transitional Cathedral when it reopens in April 2015 as the BreakFree on Cashel Christchurch. of Education, with the latter saying it needs $1 billion of 04 Arts CentreofChristchurch The property was initially a commercial building occupied by IRD until work done in the next 10 years and about $115 million 05 Justice and Emergency Services Precinct it was redeveloped by bankrupt Dave Henderson as Hotel So. He adopted a in this year’s pipeline. 06 Acute Services Building —Christchurch Hospital “funky cheap and cheerful” concept hotel with small rooms but pleasant speci- However, Mr Bundy warns pressure on valuable 07 Stranges Building fications and technology services. resources and professional services means quality is 08 Isaac TheatreRoyal It was sold pre-2011 by a receiver of one of Mr Henderson’s companies and sometimes being compromised. “We’re seeing a varying level of 09 Holmes Consulting Group operated briefly as an All Seasons. 07 09 documentation quality. Some of the 10 St Andrew’sCollege The latest owner – Auckland-based Russell Property Group – has refur- construction plans and specifications bished and redesigned the hotel. we’ve been asked to do plan reviews for This includes an expanded ground floor café/restaurant and the inclusion have been quite eye opening. I think it’s of a number of high quality traditional hotel rooms located on the top floor www.holmesgroup.com partly indicative of pressure of workload executive level. and pressure on their professional Russell Property group managing director Brett Russell says his company services, but companies need to say

Continued P29 28 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY February 27, 2015 / The National Business Review The National Business Review / February 27, 2015 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY 29

to four years to complete after it “A number of new methods started with assessments within have been established and we Theatre restoration worth every cent More hotels open Saving Christchurch’s heritage two weeks of the earthquakes have also reinvented old meth- starting. “We have been work- ods to achieve what we want to When the restored was opened ing here since 2011 and have make the buildings safe.” just before Christmas it bought gasps from guests to hot trading stone by stone completed the registry and gym- The engineering consultancy at the first performance there in years. nasium, while the college hall has carried out core drilling Many thought they were in the theatre of old From P26 and clock tower are structurally down to 12 metres on the 600mm before it was damaged by the earthquakes complete.” thick walls for strengthening and as the dome, marble staircase and famous has invested more than $30 million, which will see the Sally Lindsay tre’s cluster of gothic stone and Girls’ High Schools before Mr Troussdale says the dif- to allow the creation of a shear plasterwork looked exactly the same only hotel reach a Grade-A seismic rating, incorporate a new masonry buildings dating back being transferred to the Arts ficult aspect of the work is the concrete wall against the stone. brighter. exterior façade and provide an expanded ground floor With only 165 of Christchurch’s to 1877 is one of the most com- Centre of Christchurch Trust complex layout of the site, the “It is relatively complex,” Mr The $40 million rebuild of the entire building opening on to Cashel Street. 309 heritage properties left plex projects for Holmes Con- Board in 1978. inter-connectedness of some Troussdale says. apart from the façade includes a new auditorium, The 263-room BreakFree on Cashel will be the largest precarious but standing after sulting. The centre was originally Project director John Trouss- buildings, pre-strengthening He says the confidence to fix lift access to all floors, an extendable stage and a three to four-star hotel in Christchurch. the earthquakes, attention has built for Canterbury University dale says the $290 million res- work and meeting and comply- every part of the historic Arts new foyer and bar, as well as restoration of much of the Mantra Group also manages the Peppers Clearwater turned to salvaging what remains College and Christchurch Boys’ toration will take another three ing with heritage controls. Centre comes from looking at the heritage features. Resort 7kms from the centre of Christchurch, and Break- and pushing rebuilding along. buildings from a different per- The job for Holmes Consulting morphed from restoring heritage Free on the Point and BreakFree The Waterfront, both in In the past year saving what spective to achieve the desired after the early earthquakes into rebuilding the entire theatre apart Queenstown, as serviced apartment properties. is left of the city’s history has design. from the façade. Other hotels on the drawing boards in Christchurch picked up speed. The Isaac Royal “There aren’t any parts we Project director Mark Whiteside says before any work could include a yet-to-be-built CoSa hotel to be operated by Theatre was one of the first to haven’t been able to fix. There start on the theatre the auditorium was stabilised to create enough StayWell as a Leisure Inn on the northern fringe of the reopen and the Arts Centre is is always a way but the balance space to get the heritage features out and establish safe working CBD. It is due for completion this year. well on track to be completed is between the cost of construc- conditions. Other new hotel developments in the garden city within the next four years. tion and achieving the heritage Restoration of the original eight-tonne 1908 painted canvas include Ramada suites at 264 Tuam St near High St, a site Holmes Consulting has been results required.” dome was a major part of the theatre’s heritage fabric installed of a demolished hotel. involved in both properties Mr Troussdale says costs in the new building. It was preserved in a white shroud while the ISAAC THEATRE ROYAL: Restored but also renewed Late last year the former upmarket Chateau Blanc on and others needing restoration, in such places can reach up theatre was slowly deconstructed around it. Years of cigarette Montreal St next to Cranmer Square and Hagley Park was smoke, grime and weather damage after the earthquakes made including children’s theatre Malt to $20,000 a square metre. time. When we thought we had a handle on things, we would open reopened as Hotel Montreal after a significant rebuild by work on the canvas challenging. up an area and it would be like nothing we had seen before.” House, Strowan House at St “We could achieve everything developers Lilly Cooper and George Cooper-Dixon. To recreate the plasterwork experts were brought in to make Mr Whiteside says while it was a reasonably stressful job it was Andrew’s College, Hare Memorial we want if we had that sort of Hotel operators are still emerging from a period of rela- moulds of the original decorative plaster. “It was difficult as the interesting as projects of this type don’t come along often. “The Library at Christ’s College and money for the entire complex tive strong supply with most growth seen in Auckland, geometry of the building had changed but we got the moulds back finished theatre looks fantastic, has a better stage and a useful the town hall. The company has but we don’t and work on the Christchurch and Queenstown. to the drip line and even the flaws in the original plasterwork were foyer.” just finished the design for the principle that some of the herit- Early movers onto the scene – post quakes – were the replicated,” Mr Whiteside says. He was particularly impressed at the level and professionalism town hall, a Sir Miles Warren con- age fabric has a slightly higher He says right from the start nothing was easy about of fundraising carried out to cover the shortfall between the Rendezvous in Gloucester St, one of a handful of high structivist design built in early priority in some areas than oth- the reconstruction. Trying to keep to the original geometry insurance payout and construction costs. “The theatre trust rise buildings to survive, and Rydges overlooking Latimer 1970s but there is no definite ers. The exterior is of high prior- was immensely difficult. “No part of the building was ever was diligent in applying for government grants and people were Square. date for work to start on the $127 ity and we spend more money straightforward and we were working on multiple strands at a enthusiastic in contributing to a great project.” A few were fortunate to trade all the way through – sev- million project. there.” eral near the airport, and The George near Hagley Park. Restoration of the Arts Cen- BACK IN ACTION: The Arts Centre gymnasium, one of the first buildings in the complex to be restored [email protected] [email protected]

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RANGI RURU: The private school built entirely new structures “The new trend is for these areas to merge into one with a following the range of seating and food and drinks on offer throughout the earthquake From stuffy to day to maximise people’s spend and keep the hotel’s revenues ticking over.” Schools repairing funky hotel lobbies Mr Dalman says the investment to develop or revitalise lobbies into a multifunctional space with accessible technol- ogy can be commercially astute. ”A tangible benefit is the more than just buildings Sally Lindsay reduced physical space required and capital costs. “It also enhances revenue streams – not only from food Gone are the days of the separated lobby, bar, restaurant and and beverage spend but from room revenues because mod- lounge area in hotels. ern travellers’ like to stay in vibrant hotels where they feel Lobbies are now spaces combining check-in with a busi- comfortable to socialise, work or just hang out,” Mr Dalman Nathan Smith much more quickly in terms of rebuilding our Heading to school each day offered a ness and social hub appealing to house guests and the public. says. campuses and buildings. much-needed grounding for both students Christchurch’s new Mantra-operated BreakFree on Cashel “Guests walking into a five-star hotel probably wouldn’t As the buildings in Christchurch are repaired, the “We have to sort out our own finances to do and families. In the upheaval of natural disaster hotel will have one of these new breed of blended lobbies in accept people sitting around drinking or socialising in the school system is repairing the hearts and minds of this but at least we have a sense of self-determina- and subsequent reconstruction, some people a funky refurbished building that was the David Henderson- lobby but in the new breed of lobby it is what is expected. students and children. tion,” she says. became distraught and negative. Schools were developed hotel So before the earthquakes. Mr Henderson “In creating successful lobbies the essence of the hotel has After the earthquakes, the sense of desperate New buildings aren’t the only result of the a safe place for students to do “what they bought the former IRD building and turned it into a hotel to be understood and the design authentic to its location.” alteration in everything was palpable. Nothing earthquakes. Ms Moor says even the ways the always had done.” when the tax police moved out. Following this trend, Russell Group is using demolition seemed normal anymore and both the independ- staff think have been transformed to deal with the “Education in the region was hugely The property was bought by the Russell Group after the timbers from around the city in a contemporary way in the ent and state school sectors tried to maintain nor- realities. affected. There are pockets where hardly earthquakes and work has been in progress by Dominion lobby. malcy for the students. “The earthquake made us think differently. It anyone lives anymore, so that naturally Constructors, owned by the group, to fix the moderately dam- He says any refurbishment design has to fit in with a cli- Many schools were suddenly forced to conduct rattles some of the things you’ve held dear about affects the local schools. aged building and strengthen it to 80% of the new building ent’s budget and that can be difficult after earthquakes have classes in garages, containers or dormant swim- education and how to run a school. It wasn’t just “Like a business, you readjust and code to reach an A-grade structural standard. damaged a building. “When we started ripping walls down, ming pools when, only a few metres away, their physical walls that came down in the earthquake, slightly downsize. And now student Rooms in the refurbished hotel will be relatively small to we came across a few problems and had to think differently old buildings stood unoccupied and condemned. a lot of invisible walls made up of customs, rules numbers are building back up again.” appeal to younger people and those on business, who don’t to work out the issues.” Rangi Ruru school was no different. Its first and regulations within schools came down too. Digging beneath the figures of want to pay the full rates of the bigger brands, while the lobby On the western side of the building a new glass wall has buildings were founded more than 125 years ago, “That sort of thinking doesn’t go away. The migration shows the departures were area will open out on to the street to attract not only house been installed. When Dominion Constructors pulled off the with new construction occurring in almost every school continues to think outside the box and often from areas particularly hard hit. But guests but the public. old panelling it found problems with the flashing that would decade since. The earthquake spurred a fresh question why we’ve done things in certain ways. since Rangi Ruru’s school zone is the entire Richard Dalman of Christchurch-based Dalman Archi- have been rejected by a building inspector. Mr Dalman says it construction boom for the school, which updated That would be the same for a lot of businesses all Christchurch area, it “tended to spread risk” to tecture, who is designing the new- look hotel, says the hotel was cheaper to put up a new glass wall. almost every aspect of its facilities. over Christchurch; we are all experiencing much the whole region rather than burdening isolated lobby is following the worldwide trend of an integrated space The hotel’s front had a 1980s office building look, with Principal Julie Moor says her school was able to more collaboration,” Ms Moor says. schools. with many functions. GRC panels around three facades. They have been kept in the begin this process much faster than the state sec- There is a concept in the wider New Zealand “The big hit for boarding schools was the “Guests are being lured out of their rooms into cleverly front and lined with vertical louvres in an “interesting pat- tor schools could because they were not reliant on community that the earthquakes negatively image from people outside of Christchurch that blended lobbies where they can connect with colleagues and tern” and finished in a shade of gold on one side and orange Photos: Dave Richards Ministry of Education decisions. affected school rolls as families moved away. While the city rocked and rolled the whole time. But our friends as well as their IT devices. The new lobby provides a on the other. “We are essentially an independent business that was certainly true in the immediate after- boarding numbers are up once again,” Ms Moor bar, relaxed spaces for coffee meetings, free wi-fi and more “When people look through the louvres they see the old and like other private schools we were able to get math, many families stayed and their children still says. intimate spots for individual work while making guests feel open more quickly and we’ve been able to move needed to go to school. [email protected] part of the hotel’s vibrancy. Continued P34

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Geordie Hooft standstill. And insurance wrangles have is snowed under with claims on the level been a source of despair for too many. of earthquake damage to a property, what The excitement expressed by Christchurch Four more years, boys On the upside, new infrastructure, Little hope of earthquake repairs are needed and the level required. mayor at the recent open- public facilities, entertainment venues This can be from cosmetic repairs through to ing ceremony of the Cricket World Cup was and hospitality options are really exciting. demolition and rebuilding.” palpable. Entrepreneurs are taking the initiative and, Mr Wolff says the claims are developing Her proclamation that “Christchurch – let’s hope not as a result, new precincts like Strange’s Lane claims ending any time soon case law but clients are still frustrated at hav- is back” was framed by a reminder that are created. Provided they’re allowed to get ing to take legal proceedings to enforce their four years ago, our city was supposed to be on with it, new businesses are sprouting insurance policies, particularly when many hosting Rugby World Cup games. up and a walk through the city becomes a Sally Lindsay MICHAEL WOLFF: The law firm has seen claims from of the cases seem to be the same. The earthquakes meant that oppor- solidation of small land holdings has been took in the morning will be available in the journey of discovery. Dealing with claims $20,000 to $2.5 million that are taking on “Three houses next to each other with tunity was forever lost, and gave the city’s required to progress anchor projects, such evening, as it’s likely there will be 100 road Visitors are almost uniformly compli- Insurance hassles are wearing Cantabrians puts a lot of stress on average six to nine months to settle. essentially the same earthquake damage and special role in the Cricket World Cup a as the rebuild of the Cashel St shopping cones and half a dozen “Road Closed” signs mentary about the resilience they see in down and it looks as though little relief is families “A percentage end up in the High different insurers can get different responses poignant meaning. precinct. There have been stalemates and erected in the meantime. the inhabitants of Christchurch. Living in sight for years as a huge number of cases Court and, while the court has largely and time frames. It understandably puts a lot Ms Dalziel’s comments were endorsed stalling. A balance has yet to be established Some businesses are enjoying unprec- among the ruins (some still standing – but wend their way through the courts. including dealt with the law around policy of stress on families.” by Prime Minister , who remarked in terms of supply and demand for space. edented growth, such that the size of their only just) and empty spaces, it’s possible Although the Insurance Council says the number interpretations and responses, it [email protected] that Christchurch was open for business. tax bills is approaching their pre-quake to become inured to it all and it’s often not private insurers have paid out almost $14 of claims, And it is. There is definite progress hap- The most profits. That has made business and tax until an outsider’s perspective is heard that billion in settling 83% of commercial claims the extent of pening. From my office window, I can see planning essential – just as it is for strug- you realise that yes, we have been through and 57% or residential claims above the damage, open- Quakes linked to building scraps the CBD spread out, the skyline punctu- needed gling businesses. While some tax relief has a lot. EQC $100,000 cap, law firms are still getting ended insurance ated by construction cranes working on a been offered, understanding the applica- So this month marks the fourth anni- numerous insurance cases to be resolved. policy wording, Construction disputes are rising in Canterbury details to identify the construction contract, identify attributes for directly related to the amount of building work in the construction work and the relevant period to mix of private and public projects. There tion of the rules requires the same level of versary of the biggest and most destruc- Many lawyers say the insurance wrangles resource constraints, the wake of the earthquakes. which the progress payment relates, state the are roadworks everywhere re-establishing deciphering as the insurance policies they tive of the earthquakes. And it’s another are putting a noticeable strain on relation- regulatory and technical living in Christchurch The majority of disputes are payment claims, claimed amount and due day for payment and that the horizontal infrastructure. relate to. Rugby World Cup year. As ships within affected families, while clients challenges,” it says. insufficiently documented variations and is it made under the Construction Contracts Act. The fact I even have an office win- are resilience and The most needed attributes for liv- the rebuild carries on, let’s say they are overwhelmed by the informa- The Insurance Council says it recognises disagreements over the quality of work. Lawyer Michael Wolff says a small percentage dow is progress. For well over two years ing in Christchurch are resilience and hope George Gregan’s tion collated over the past few years, are the frustration of people whose claims have patience There are some simple and straightforward of construction contracts run into problems that Grant Thornton, like so many businesses, patience. Roadworks are a sign of pro- words don’t haunt us: highly stressed and under increasing finan- just reached or are yet to get to their private steps people can take to avoid these disputes require litigation but a large number are disputes took refuge in a location that was barely Some businesses are going in as early gress but they are also a source of frus- “Four more years, boys, cial pressure. insurer and has had constructive discussions arising: that can be resolved reasonably easily. If people adequate. We are now comfortably housed adopters, while others wait to see where tration. It’s often noted that Caesar built four more years.” New Zealand has one of the highest with EQC about giving more clarity and cer- n knowing the obligations imposed on parties comply with the act before a dispute arises, any in new, post-earthquake engineered, pur- things settle. a bridge across the Rhine in 10 days, insurance rates in the world. The country tainty on claims that will go over cap this year. under the construction contract. The contract difficulty can usually be resolved quickly and cost posebuilt office premises, close to the CBD In the suburbs, as in the town, insurance yet repair of the bridge at Ferrymead Geordie Hooft is a partner at Grant ranks second highest for risk and non-life Grimshaw & Co lawyer Michael Wolff says provides the basis for the work to be carried out, effectively. and other professionals. Life is returning to woes continue, and there are still thou- is taking four years. Building seems to Thornton insurance with premiums equivalent to 5.2% a number of cases he sees are people having the amount to be paid and the time for payments. “People need to get advice at the right time or [email protected] the central city as other building projects sands of claims that have yet to be settled, progress at a crawl, with the planning of GDP. to deal with insurance claims while living in The contract will also set out the requirements for as soon as a problem becomes apparent. There are completed, notably Victoria Street and let alone acted on. There are questions and consent stages taking as long as A report by Resilient Organisations and houses damaged four years ago. a valid variation. is no need for a construction dispute to cause Cambridge Terrace, just west of the Avon about the two-tier insurance structure actual construction. Compli- Canterbury University says although New “Since the quakes nothing has been easy n the Construction Contacts Act provides excessive delays during the rebuild or repair of a River. It’s not Christchurch as we knew it that exists with EQC and private insurers. ance complexities are like Zealand has a high insurance penetration in Christchurch and having to wait more remedies to recover payments. property. but it’s starting to take shape. Driving is like using the stairs at Hogwarts: a spinnaker in the water, people are frustrated by the slow speed of than four years for an insurer or ECQ to Law firm Grimshaw & Co says any payment “Most construction disputes can be resolved The central city has had its issues. Con- there is no guarantee that the route you dragging the boat to a claims settlement. “There are a number undertake repairs to an individual’s home is claim must be made in writing, contain sufficient quickly if approached in the right way.” of factors complicating the claims process unacceptable.”

Gerald Haskins of Christchurch put the H in GHD!

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Hazeldean Business Park Christchurch Level 1, 12 Hazeldean Road, Christchurch Timaru M 021 245 2225 E [email protected] Find out whysomanybusinesses have Follow us on Twitter @DecipherGroup Izone keeps on delivering when it chosen Izone as their new home at: Follow us on LinkedIn at www.linkedin.com/company/decipher-group-limited comes to industrial land solutions. www.izone.org.nz We Deliver SDC26986 34 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY February 27, 2015 / The National Business Review The National Business Review / February 27, 2015 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY 35

nificant long-term potential. We think there’s compliance, design review, procurement of under construction, in a joint venture with tion Precinct by the Canterbury Earthquake a shortage of construction capacity in the supplies or labour. Australian company Thiess, giving access to Recovery Authority’s architects. Marketing is Post-earthquake rebuild offers $100-200 million range.” Mr Henderson, chief executive of South- knowledge and experience and also labour already under way for the sale of the buildings Leighs has its own workforce of 150 com- base, says he aims to get alongside the client from Brisbane. when complete plemented by subcontractors as required, an as early as possible. “Already we have combined to re-engineer A head office for up to 300 Kathmandu longer horizons for local and national firms operating structure that offers more control “There has already been a flight of capital part of the construction to save both money staff will be finished in early 2016. Kathmandu than just being a project manager. from the city and it is probably easier for and time.” has a 10-year lease, effective 2016, with rights Mr Leighs says a rebuilt central some developers and institutional investors The St Margaret’s College’s Winchester Pre- of renewal. Christchurch will be the envy of tenants who to make better margins elsewhere, so project cinct development, which included 7000sq m These new buildings will be complement- have fled to the fringes of the city. teams need to collaborate to get the best of new buildings completed to 130% of NBS, ed by a building to be constructed behind the Chris Hutching tions manager where he will seek work for the developments as an owner or equity partner It may have taken too long but the first results.” is an example of some of the education work nearby historic McKenzie and Willis façade. company. was because it soon became apparent there Crown projects are at foundation stages and available. Investor Richard Peebles plans to preserve the The Canterbury earthquakes have prompted Leigh’s will be coming up against rivals like would be major property hassles with insur- private developments are springing up. Post-earthquake central city projects façade in a design-build joint venture includ- companies to develop longer-term growth Fletcher, Hawkins and Naylor Love, which are ance companies. Mr Leighs considered it Meanwhile, a brand new company that have also proved a boon for Calder Stewart, a ing some family shareholders of McKenzie strategies. all looking ahead to Auckland’s next develop- best to work with major landowners on their owes its emergence to the earthquakes is longstanding company in the South Island. and Willis. The cost to fully renovate, restore Local firms are already looking further ment wave in a couple of years. projects. Southbase Construction, a subsidiary com- “The current wave is residential build- and incorporate the façade into the new afield even as national firms set up new offic- The quakes have allowed Leighs to build Some of the first post-quake work for pany of the HCG Group. The owners include ing. But we see the commercial rebuild as development is estimated at $4-4.5 million. es in Christchurch. a lot of expertise in work in different areas. Leighs involved demolition of buildings such wellknown Canterbury business people Quin quite different,” joint managing director Alan Wynyard Group has announced it will Local company Leighs Construction Current projects in Canterbury include the as the Crowne Plaza Hotel followed by transi- Henderson, Philip Carter, Ben Gough and Stewart says. base its crime analytics software and services founder and managing director Anthony central city new ANZ and BNZ centres, Rangi tional projects such as the ReStart container John Holland. “The commercial rebuild should be much there in a research and development facility Leighs is already looking beyond the local Ruru Girls’ School Blue Skies Development, mall in Cashel St, pending completion of new The company has become a major com- longer lived. It has been longer coming out of for 100 staff. rebuild, even though it has a long way to The Hub, plus the Burwood Health Campus developments there. petitor in the rapidly growing post-earth- the ground and will be bigger. The tsunami of work emanating from run yet. in Christchurch – one of the largest hospital “We’re looking to the future. The rebuild quake construction boom. ST MARGARET’S: Gained 7000sq m of new buildings “The residential rebuild is replacing old Christchurch prompted Wellington-based The post-earthquake period isn’t some- building projects in New Zealand’s public has a long way to run but will only go so long. Since incorporation in early 2013, South- stock but the commercial rebuild will prob- project managers, The Business Intelligence thing most people are dwelling on. It seems health service. “There are a number of significant projects base has secured more than $70 million in When it came to the newly completed ably be more significant for the region.” Group, to expand its branch in the south. a long way off. The Crown anchor projects Leighs is a construction company rather on the cards in Auckland. It’s about position- projects including the Hagley Park Cricket six-storey Deloitte office building at 151 Cam- Calder Stewart is also developing TBIG’s South island business manager Ian are yet to begin and all the signs suggest even than developer, because direct involvement ing ourselves. Oval, St Margaret’s College rebuild and two bridge Tce, Southbase worked with investor warehouses and factories in the west of Smith says the company is aware of the chal- stronger commercial activity before things tail in developments can sometimes lead to “A lot of Auckland activity is centred on significant A-grade commercial buildings on Mr Collins as well as the architect, engineers Christchurch at Hornby and Wigram for the lenges in building up and sustaining a grow- off after 2017 or 2018. rivalry with clients, although Mr Leighs is residential development at the moment but Durham St, as well as working on several pro- and financiers. likes of Skellerup. ing business. But Mr Leighs has a longer view. Just involved in a couple of developments in a we see the commercial market as offering sig- jects within the planned CBD retail precinct. “Because we were on board early before The momentum is driven not so much by As well as TBIG’s involvement in several ahead of his company’s 20th anniversary he private capacity. One of the near-complete projects is the the design began, we were able to look the earthquakes but Christchurch’s general major projects, it has also clinched a con- has appointed Jeff Vivian as Auckland opera- Strange’s Building Another reason for steering clear of Continued on facing page “poster-boy” Deloitte building at 151 Cam- beyond accepted methodologies to mitigate economic growth and position as the main siderable amount of work for the Ministry of bridge Tce built on behalf of developer South- risk. It’s in these early stages that you can centre for the Canterbury rural hinterland, Education and this work is expected to con- base client Stephen Collins on the site of the stress test the budget.” he says. tinue for several years. former Santorini Greek restaurant overlook- Owner Mr Collins is pleased about the In the central city Calder Stewart is devel- TBIG is working with four lead state agen- From stuffy ing the Avon River. feedback on the quality “and wow factor” of oper and equity partner with Kew Innovation cies delivering the new accommodation fitout Expenses are a big issue as the rebuild of the building. in building the Vodafone and Kathmandu in four new office buildings for 1500 staff to funky central Christchurch gains momentum and A government anchor project Southbase is buildings, currently under construction in across approximately 17 government agen- price pressures intensify – whether regulatory working on is the Christchurch Bus Exchange, Tuam St, in an area dubbed the Innova- cies in central Christchurch. From P31

building behind, which will be painted white,” Mr Dal- man says. “The louvres give the hotel a modern new look but on closer inspection it retains the older building and connects to what was on the site before. This is not only aesthetically good but is also cost-effective.” He says while the pro- ject’s final design has taken a year it was given resource consent within 10 days and three building consents went through on time. “The coun- cil’s urban design panel is behind what we are doing. It will be something quite spe- cial for Christchurch.” An April opening is planned for the new hotel. [email protected]

OPENING THE DOOR TO CHRISTCHURCH The Christchurch rebuild offers burgeoning investment opportunities. Murray&Cois uniquelypositioned to provide domestic and international investors with access to this The landscape of property in Christchurch has changed dramatically in the last four years. growing market. We areaChristchurch-based CBD property owners, especially, are faced with a lot of challenges and opportunities. Canterbury merchant bank,offering investment banking That’s why we’re here. Bayleys are the largest full-service real estate agency in the Licensed under the REAA and wealth management services. South Island, we’re on the ground and we have the experience and knowledge to help For more information you maximise the value of your investment. Now. Because we get it. 03 375 4700. bayleys.co.nz 03 336 5300 |murrays.co.nz HCA.CO.NZ BAY0015 36 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY February 27, 2015 / The National Business Review The National Business Review / February 27, 2015 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY 37

Jason Walls of COPD in sufferers.” “This [project] will use An innovative initiative is The sensing city – data in a very real way to IT and rural markets switching gear gaining momentum in Can- create value which was pre- terbury as Christchurch is viously impossible to create rebuilt as a digital city. even five years ago. Sally Lindsay picked up confidence to move to other jobs. they previously thought was a stable job. Four many people to reassess where they are with A group called Sensing a world first “It’s a very real example “We try to strike a balance between recruiting years after the quakes has been a chance for Continued P39 City has seen potential for Is what COPD costs of how you can use data in a The shape of Christchurch’s IT employment locals and people from elsewhere as the level massive investment in smart New Zealand every different way.” market has changed rapidly over the past few of sustained growth can’t last by relying on technologies when rebuild- sensor technology to help health. a one-off opportunity in year. We will help to The project was origi- months. local people.” ing the garden city’s CBD. improve the quality of the Sensing City founder Christchurch, as there is reduce the third that nally funded by Callaghan From a stable sector where few locals were One of the main problems facing In a world first, it is using people of Christchurch’s Roger Dennis says there is nowhere else in the world goes to hospitalisations. Innovation to the tune of a moving, jobs are now being snapped up by Christchurch IT recruiters is being able to – CDHB data Helping to that is spending billions of quarter of a million dollars. employees already in similar positions at attract talent from elsewhere in New Zea- dollars to rebuild the heart Mr Dennis says that other companies. land. Mrs Bishop says it is easy to recruit build abetter of a city. money unlocked another In the second half of last year more than people from a broad range of countries over- One of the reasons for the million dollars in research 60% of jobs were taken by foreigners or New seas who come here for the lifestyle, work/ Christchurch initiative he says, is the idea funding from Sweden and Zealanders migrating internally to a city life balance or are travellers on an extended that the Christchurch rebuild Australia, as well as more slowly recovering from earthquakes. Reten- working holiday. should be a catalyst to devel- funding from New Zealand tion wasn’t an issue for companies. Now it has “Although many Christchurch companies op a new export industry for donors. swung around to a significant percentage of pay national salaries, it is proving difficult New Zealand. He says now the project jobs being taken by local candidates. to entice people here and is frustrating. We 4.2 days is the He says he wants to average hospital stay has won the attention of Specialist IT recruitment agency Sourced believe it is a North Island thing about mov- develop weightless, high for COPD sufferers international researchers has seen a shift locally from a low turnover in ing to the South Island, even though working value, exportable intellectual at a cost of $7,700 and technology companies. jobs to significant movement of staff from one conditions are the same.” property. per stay. Spark Digital mobility Christchurch IT job to another. A year ago Christchurch IT salaries rose One of the ways Sensing – CDHB data head Richard Adams says Business owner Michelle Bishop says until 10% over a year, outstripping Auckland and City has showcased this sort the Sensing City team has a few months ago recruitment was weighted Wellington. A combination of demand for of ‘knowhow’ is by turning its got an opportunity, to help toward people moving to Christchurch, not skills in the rebuild and a growing cluster of attention to citizens’ health. rebuild Christchurch as a switching jobs within the city. technology exporters drove the salary growth. Choose low-risk NewZealandfabricated steelwork It has developed a meth- “digital city.” The city has a broad spectrum of IT play- Mrs Bishop says the buoyancy of the pre- od to help people suffering “It has this opportunity to ers, including some of the country’s most quake IT recruitment market has continued for aresilient Christchurch from the respiratory illness Thousands of data start to use technology and innovative and successful software, hardware but the shape of the sector has changed chronic obstructive pulmo- points collected capability that other places and electronics companies, the government, immensely in that time. nary disease (COPD). around the world would listed companies and small to medium busi- “Companies are sharing ideas more freely The condition is similar to Anonymised and have to augment, rather nesses. and collaboratively and a lot of their work is asthma and COPD sufferers published in near than build from scratch.” IT contributes nearly $900 million a year to more visible and attracting higher levels of use medication which is dis- real time to provide He says this is an oppor- Canterbury’s GDP. talent than previously. pensed by an inhaler. more insight into tunity to make the city bet- She says growth within Christchurch com- “Staff are willing to take more risks with “When patients expirate COPD, how to ter for its citizens. panies has been significant and people have their employment and look outside what manage it and from COPD, generally “I think the fact that make a difference in they call an ambulance the Sensing City guys have sufferer’s lives. and go into an emergency been bringing it down to a Worker abuse not acceptable department.” personal level about how He says on average, each Recent cases of worker exploitation in that are not equivalent to the dignity of the job they Christchurch should be dealt with harshly, do. If they have a work visa they must have the COPD patient will be in hos- real time. ManpowerGroup global chief executive Jonas same rights as every working New Zealander. Building Surveying • Engineering pital for four days and that In Christchurch, COPD Prishing says. “Employers must be made accountable and the cost to the health system is patients are able to use a More than 700 workers arrived from the government needs to come down extremely hard Quantity Surveying • Architecture more than $7700. sensor which fits over a Philippines last year to help with the rebuild and on anybody who exploits workers. COPD costs the taxpayer standard inhaler that auto- more are expected as the government fast- “Hit them where it hurts – in the pocket – and Commercial Consulting • Project Delivery between $100-200 million a matically records details of tracks visa applications to get more people from look at other sanctions.” year, Mr Dennis says. when and where it is used, overseas. He says it is important New Zealand cleans “Until recently, GPs who as well as how much medi- For some Filipinos the experience has been up bad employment practices by some firms. manage these patients had cation was discharged. less than enticing. There have been complaints “Demographics show the population is declining 0800 117878 ·+64 3365 0732 no way of collecting hard As well as this, the Sens- Richard Adams of cramped and expensive accommodation, and New Zealand will need to become a and fast data about when ing City team will also col- oppressive contracts, lost jobs and working destination for skilled migrant workers who want 171 Victoria Street · patients start to get worse lect environmental data it would work for someone without pay. to come here, contribute to the country’s growth under what conditions and about Christchurch’s air with COPD and really feels Mr Prising says it is completely unacceptable to and stay. They will not come if they hear of worker hamptonjones.com ·[email protected] where.” quality – information they the effects of it, is quite a have any workers living and working in conditions abuse.” But Mr Dennis says will be making freely avail- clever way to do it.” though “air quality kits” able to the public. He says Sensing City is distributed across the city, Mr Dennis says there is a in an interesting position Christchurch will be the “high suspected correlation because of the state of the first city in the world to cor- between poor air quality [in city and the rebuild efforts. relate the city’s air quality in Christchurch], and the rate [email protected] DELIVERING PROJECT SUCCESS FOR 25 YEARS

We’reonajourney with Christchurch, from the early days when we helped the Ibis &Novotel hotels reopen in the redzone, through to providing project certainty and success for over 50 Christchurch businesses, schools and community projects in the last year alone.

For project feasibility,planning and delivery,please call our South Island Business Manger Ian Smith, on 029 235 7760. www.tbig.co.nz 38 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY February 27, 2015 / The National Business Review The National Business Review / February 27, 2015 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY 39

Sally Lindsay From P38 projects from initial plan- ning and design through IT and rural markets switching gear Canterbury’s education Stumping up with money to creativity, light and airy and to final construction. “It is sector is providing plenty of open to the outdoors. These made easier knowing the work for global engineering elements create modern government has committed From P37 management positions. has completely reversed as dates for rural positions, they company GHD. schools with improved the budget and is spend- “Until recently many the sector offers more than are often people who have Engineers and planners facilities to support teach- ing it where and when it is their jobs and many are find- did not see the rural sector the usual run of rural jobs. It no background in the sector are deeply involved in the fix city’s broken schools ing and learning.” most needed to fix broken ing they are less engaged and as an attractive option for has realised it needs digital but are being lured into the government’s $1 billion pro- The ministry’s property schools.” ready for a change – and a highly skilled managers and marketers and people savvy industry by the innovation gramme to merge, restore, team is overseeing school [email protected] change they would probably marketers. It was regarded as in the social media area.” becoming apparent, particu- remodel and rebuild Can- never have contemplated lacking in innovation, excite- Ms Every says when the larly in the dairy sector. terbury’s earthquake-hit The capital investment secondary schools, two teen schools, two kura (years Ministry is committed to over Education Minister before.” ment and dynamism. That company approaches candi- [email protected] schools. includes 115 schools, 18 parent units, five special 1-13) and 88 primary and pushing along repairs and Hekia Parata’s merger plans Rapid pace of private development Many companies are intermediate schools. new builds at a rapid rate. appears to have largely gone growing quickly and the GHD is architecturally GHD is rolling out a and we are seeing positive biggest issue is how to master planning the con- structural design for schools action to get on and repair resource them. Graduates troversial merger of North to ensure 100% resilience or build new schools.” are seen as an obvious New Brighton, Central is built into them and in She says GHD is aware option and work has been New Brighton and Freeville many cases these exceed of the sensitivity around done through tertiary insti- schools to a new school on New Zealand building code school mergers and rebuilds tutions on getting them one site and planning and requirements. and the company’s work into local jobs they will find remodelling the primary “We are a long way down with principals and boards challenging and interesting. Withover40years experience in all sectorsofthe school at Rolleston. the track from when, not of trustees involves taking A university graduate buildingindustry,DominionConstructors has The company is also long after the second and into account the balancing placed in an IT company involved in remodelling most severe earthquake, of the school’s functional THE TERRACE: ’s Oxford Tce entertainment recently was travelling regu- Quality expanded it’sbaseand hasbeendelivering quality stage one of the existing two GHD staff were placed objectives with the speed it and office developments are taking shape. The crane in the larly to the US within three structuresinChristchurch since2012. background is being used to build Nick Hunt’s NZ Centre Tai Tapu School on the in the ministry’s offices to wanted to give the commu- months of his recruitment Aiming straddling a block between Cashel and Hereford St, which will Innovation city’s outskirts and outline run the assessment pro- nity a best practice school while still being headquar- We arecommittedtothe rebuildofthisgreat city, also provide offices for several thousand state sector workers planning for new PPP- gramme to identify and for 21st century learning. tered in New Zealand. “He becoming asignatory of theCanterburyRebuild built schools at Aranui, quantify damage, deter- An Australian GHD edu- gets the best of both worlds, Performance Safety Charter andproudly offeringsteady High Rolleston and Whakatipu in mine remediation values cation expert was brought In the private sector Beca, a global professional services company, international experience and is providing structural engineering and design for some major Queenstown. and work out the insurance over to give advice and being able to live in New Zea- employmentfor localpeople. development projects – The Crossing for Philip Carter, the Terrace Donna Bridgman, GHD’s apportionment. This work work on best practice 21st land,” Mrs Bishop says. for Antony Gough and the Triangle Centre for Tim Glasson, three We lookforward to continuing our work with South Island area manager, helped the ministry settle century schools design and Decipher Group direc- wealthy and well-known Christchurch developers. says the company started insurance claims as quickly master planning. “It allowed tor Sarcha Every says her local, overseas andnationalpartnersinbuilding The Crossing is a $100 million retail development with a work on earthquake assess- as it could.” us to hit the ground run- theChristchurch of tomorrow. 534-space car park, which Carter Group will operate and maintain ments of schools within Ms Bridgman says the ning. The work in this sector for 50 years as a public car park. Developing the car park is seen www.constructors.co.nz two weeks of the first earth- company is now work- is continually evolving and as a game changer for the city and will unlock other developments. quake. “The work on assess- ing with school principals there has been a lot of infor- Antony Gough’s mixed use $150 million Terrace project when ing, repairing or rebuilding and boards of trustees on mation to take in at ministry completed will include 40,000sq m of bars, restaurants, shops, a schools has mushroomed repairs and master planning level. hotel, apartments and offices for 2000 workers. with each major quake and of new schools. “There are “Each school is differ- The first stage of the development includes two buildings facing aftershocks.” some emotionally charged ent and we are designing on to Oxford Terrace and a third facing onto Hereford Street with Sarcha Every Four years after the people after seeing a school to meet ministry codes for retail, bars and office space. earthquakes, Ms Bridgman destroyed or having to new environments that are Beca will be the main tenant in Tim Glasson’s Triangle Centre company has found the city’s says the recovery of Can- accept a merge with other flexible for technology and development when it is finished next year. The 1700sq m project employment market chang- terbury schools has come a schools. It is upsetting for a covers ground floor retail and hospitality areas and three levels of ing in unexpected ways. long way and the Education community but the anger Continued on facing page office on the corner of Colombo, Cashel and High Sts. “In a complete turna- The engineering consultancy is taking 4100sq m while ANZ round from the usual array Bank is taking 2700sq m of office space, 400sq m of ground floor of corporates seeking execu- retail and signage rights. tives, Decipher has found in BreakfreeonCashel,165 CashelStreet 10 Show Place, Addington - Goodman Property Trust Keith Paterson Beca’s Canterbury rebuild business director says the last year rural companies the developments cover a large core in the CBD. chasing the same candidates. As well as the private developments the company is also “There is a willingness by providing engineering for the Metro Sports Facility, one of the city’s rural employers to look at Building innovation, knowledge anchor projects, but progress is slow while the government looks candidates for management and experience into every project at the scope and funding of the scheme. and executive positions out- It will include a swimming pool and dry courts for netball, side the industry.” basketball, badminton and volleyball among other sports. The company, specialis- Mr Paterson says the city’s private developments are pushing ing in executive and board ahead at a rapid rate, while the anchor projects tying the blueprint recruitment, placed 40% of leighsconstruction.co.nz for post-quake CBD redevelopment are languishing because of a its candidates in rural roles lack of government funding. last year covering sales, mar- Mainfreight, Sockburn TAI TAPU SCHOOL: The first stage of the school rebuild is under way keting, financial and general

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www.jll.co.nz Auckland +64 9 366 1666 Wellington +64 4 499 1666 Christchurch +64 3 375 6600 www.sourced.kiwi www.jllproperty.co.nz 40 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY February 27, 2015 / The National Business Review The National Business Review / February 27, 2015 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY 41 Microeconomic sectors key for a Real estate agencies make hay, prosperous Canterbury future Industrial Jason Walls process of doing so. “This has boosted the industry’s capacity, efficiency offer new services Key industry sectors in the Canterbury economy need and quality.” He says this type of investment is happening at the players to be firing post rebuild, or the region may face major challenges. national level too. “In terms of delivering value over ANZ’s Debunking the post-rebuild hole myth report the long term, it’s important that procurers of building materials look at locally sourced products and services. Chris Hutching ted to long leases in subur- ers built in 2013 with a nine- nearing $300 million, Mr properties that are 100% of are being offered a new released mid-last year, outlines that for Christchurch to “From a New Zealand economy perspective, as much move closer to the ban and fringe locations. year lease that fetched $7.2 Dwan says. New Building Standard or insurance package allow- flourish post rebuild, key microeconomic sectors need should be done to boost local industry as possible.” It’s been a juggling act But Mr Lyttle says expiries million (6.5% yield), and the “Cashed up investors buildings where they can add ing for highly competitive to be functioning well. “Identifying and unlocking the alternate drivers of growth beyond the rebuild needs to But he says the Christchurch rebuild has resulted in for real estate agencies in are coming up all the time. other was a Big Chill ware- are holding on to what they value.” premiums, enhanced cover be front and centre,” it says. increased competition from overseas. Christchurch since the earth- There have also been house, which was expanded have because it’s so hard to Industrial property has and streamlined processes mountains ANZ chief economist Cameron Bagrie says although “We have seen an increase in the amount of imported quakes. some significant new office in 2013, and has a 15-year replace and are hungry for also been a focus for JLL’s for repairs and claim settle- the report was released mid-last year, “the broad guts prefabricated steelwork entering New Zealand – even Initially, they enjoyed a investment sales totaling lease and sold for $7.1 mil- more high-calibre proper- head in Christchurch, Chris ments. The partnership will of it still stands.” though the local fabrication industry has more than surge in office leasing com- around $100 million – Buddle lion on a 7.1% yield. ties. Many of our investors Harding. enable clients to acquire Chris Hutching earthquake. He says when the Christchurch rebuild tails off, it enough capacity to meet demand.” missions as they assisted Findlay’s headquarters in The deals were brokered are looking for passive He says top rents for higher levels of insurance could provide some incubation issues for the city. However, he adds the local industry has stepped up Cheaper land and the enthusiasm business relocate to fringe Victoria St, the Kathmandu by Ben Dwan of Colliers. investments, industrial properties have coverage in the event of busi- He says an issue for Christchurch is that, after to meet the competitive threat. A major theme in the story of the of neighbouring districts Waimakariri areas, often in just a few days. building under construction Mr Dwan says local indus- JONATHAN moved 8% higher to about ness disruption or disaster. the stimulus from the rebuild has faded, Merchant bank firm Murray & Co director Christchurch post-earthquake rebuild and Selwyn to encourage property Since that time they have and the nearby Vodafone trial settled sales topped $226 LYTTLE: $130/sq m, while secondary Bayleys manages 450 it will need alternative growth drivers Justin Murray says although aspects is the flight to the west. development had already under- Backfilling clinched the major tenants building also under con- million last year, including 21 rents are steady. properties for owners and from sectors such as manufacturing, of the rebuild activity will naturally Although the first earthquakes mined the compact city plan envis- smaller areas anchoring new central city struction in Tuam St. Mr sales of above $2 million each, JLL expects the indus- the portfolio has a combined tourism, agriculture and education. decrease, he considers the rebuild were centred inland to the west of the aged in the now-forgotten Greater on the horizon office and retail buildings Lyttle says these sales plus with an aggregated value trial market to see strong value of $1.2 billion. Business stimulus will be “longer-lasting” city, there was relatively less damage Christchurch Urban Development for leasing Steel Construction NZ manager under construction. three significant industrial of $101 million. Industrial improvement over the next partner Crombie Lockwood Alistair Fussell (pictured) says the than some predict. It will be there. Strategy of the early 2000s. Colliers Christchurch deals on the outskirts of the settled sales of less than $2 12 months as new develop- Risk Partners has more than valued added sector has certainly “sustained and steady, rather than This was partly because it was The earthquakes sped up the general manager Jonathan city at Hornby show the mar- million totaled 222, with an ments and remediation 700 staff nationwide stretch- stepped up. sharp peaks and troughs.” less developed but also because the western flight by displaced industrial Lyttle says much of the future ket has become a consistent aggregated value of works continue to take place. ing across 25 metropolitan As a result of significant investment He says Christchurch is a good ground is underlain by river gravel tenants. leasing will be backfilling performer. $124.2 million. Measuring office vacancy and regional offices, and the by local fabricators, structural steel has investment opportunity and over the laid down over thousands of years as One of the largest developments is smaller areas. He anticipates The industrial sales were As more data in Christchurch is a moving new insurance offering will increased its share of the Christchurch long run, “it will experience sustained braided streams meandered across Izone Business Park at Rolleston 20km new central city commercial on behalf of Goodman on settled sales feast as more space becomes be available to all BPS clients multi-level construction market from virtually economic and population growth.” the Canterbury plains. southwest of Christchurch. It is owned developments will be smaller Property Trust and included becomes avail- available and JLL research- throughout New Zealand as nil prior to the earthquakes to close to 80% today, he He says because Auckland has become increasingly By contrast, the land to the east by , which commis- than the main buildings now a low-rise office building at able over the next ers put it at about 9%, mostly their policies come up for says. unaffordable and inefficient – coupled with Canterbury’s of Christchurch closer to the sea is sioned RD Hughes as the developer under way. Southpark Industrial Estate couple of months, within the CBD south fringe. renewal. “A number of structural steel fabricators in strong growth prospects based on irrigation – largely reclaimed mud and swamp. several years ago. A question in the minds of plus two industrial facilities total sales for But Mr Harding says The benefits for clients Christchurch have built new workshops and invested Christchurch will continue to attract investment. Foundations were seldom built Selwyn District also waives devel- many property players is how at the nearby Glassworks Christchurch once adjustments are made whose properties are man- heavily in new technology and equipment or are in the [email protected] to withstand the subsidence and long tenants will be commit- Industry Park – a Placemak- will rise further, for pre-committed space aged by BPS, and who have liquefaction that occurs in a big Continued P42 and or space that is unable their insurance arranged to be occupied due to vari- through Crombie Lockwood ous earthquake issues the Risk Partners, include four actual vacancy comes back times the standard cover to just 3.8%. for damage caused by slips Before the earthquakes or landslides, five times the Our clients never hear there was about 400,000sq standard limit for damage m of office space in the cen- to alterations and property, tral city. Now there is about double the standard cover “It Can’tBeDone” FINALIST 190,000sq m with more to for damage caused to prem- come as new buildings are ises under construction, CLEAR DOMINANCE completed. More than 1000 automatic sublimit for hid- New expertise |New technology |New cost efficiency civil servants will move into den gradual damage, auto- COLLIERS.CO.NZ Reach more people,better results faster three buildings between 2015 matic sublimit for machinery and 2016. breakdowns such as lifts or Landlords and develop- elevators, $500,000 sustain- ColliersInternational’sChristchurch office has the largest commercial ers are offering incentives able rebuilding costs exten- property team in the garden city,leading the market in sales, leasing, real estate management, rural &agribusinessand valuation services. Investors are Reaching morepeople, better results faster. looking for passive Christchurch investments, Agency: 03 365 7887 properties that are 100% of Rural&Agribusiness: 03 365 7887 New Building Standard or Valuation/Property Management: 03 379 6280 Ashburton buildings where they can add Rural&Agribusiness: 03 308 3338 value – Ben Dwan

amounting to rent-free peri- sion for total losses, 24/7 ods or fit-out contributions claims support from Crom- to entice tenants back from bie Lockwood Risk Partners suburban locations. and pre-agreed adjusters, Face rents remain in the and claims management and $360-410 a square metre settlement authority by BPS range for new A-grade property managers for day- accommodation, although to-day claims. taking into account the effect As part of the relation- of incentives the net effective ship BPS staff receive train- The first multi-storey PRESSS commercial building | Thefirst multi-storey Presss-Lam commercial building rents are below these levels. ing on insurance policy The first application of vibration-free stone column foundations Meanwhile, because coverage, obligations and insurance has become such claims processes. a big issue, Bayleys Property Bayleys Canterbury com- Services identified the value mercial manager Pete Wha- in a partnership with Crom- lan says the city’s corporate STRUCTURAL |GEOTECHNICAL |CIVIL |FIRE bie Lockwood Risk Partners. real estate sector is now tak- As a result commercial ing a broader view of working Auckland 09 972 9038 |Tauranga 07 571 0950 |Christchurch 03 379 8600 and industrial properties with property managers than www.kirkroberts.co.nz under management with simply viewing agencies as Bayleys Property Services rent gatherers. 42 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY February 27, 2015 / The National Business Review

way and rail routes Izone is well suited to servicing rural pro- Industrial players duction, which underpins about half the activity at the park and much of Canterbury’s economy. This strategic location explains why Port of Tauranga move closer to the bought 15ha last year for its inland freight hub. Port of Tauranga also owns the operational areas of Timaru Port so the new freight hub will be able to service Lyttelton and mountains Timaru. Lyttelton Port has also announced plans to site an equivalent facility near Izone. Robin Hughes of RD Hughes says the development creates From P41 its own momentum. For example, he is now negotiating with the next wave of potential tenants, who will complement the IZONE: Strategic location for Port of Tauranga’s inland freight hub opment contributions, saving developers establishment costs activities of Port of Tauranga. compared with payments required within the nearby jurisdic- Izone has about 50 buildings housing 750 employees. The development also encompasses more roading. The tion of Christchurch City Council. A nearby development closer to Christchurch is the 114ha final portion of the Halswell Junction Road extension through Izone is now New Zealand’s largest industrial park in terms Waterloo Park on the western outskirts of Christchurch at the park means the road will become a link giving easy access of land being fully consented and ready for development. The Hornby bounded by Pound and Waterloo Rds. for those in the Islington area to the airport, the ring road and final 49ha of the 180ha site was rezoned one month before the It is a joint venture between developer John Sax, of Auck- links to the Port of Lyttelton. The final phase of the road exten- first September 2010 quake. land-based Southpark Corporation and Southland-based sion is to be completed by October. However, fewer than half of Izone’s sales have involved businessmen Inky Tulloch and Paul Johnstone. The park also plans to re-route the southern end of companies relocating post-quakes. The balance has been Waterloo Business Park is rolling out Stage 3. Work began Halswell Junction Rd where it intersects with Foremans Rd, natural growth due to Izone’s appeal to companies establish- on the $400 million project with its central hub, open park and is working with the local community and Christchurch ing or relocating in Canterbury. The original 20-year expected spaces and central urban design theme in late 2012. City Council. selldown time is now likely to be about 10 years. Development manager Hamish Clarke says the next stage Titles have been issued for the first couple of stages and 23 During 2010 to 2012 reports from various industry com- involves creation of two main entrances, more road connec- lots have been sold, with nine more under negotiation. New mentators suggest Izone sold as much land as the combined tions, 16 new sites, a multi unit development, and the begin- tenants include Santa Rosa Foods and Davis Food Ingredients sales of all Christchurch industrial land. Close to main high- nings of a hospitality and retail hub next to the main park. and new owners include Hanham and Philp Contractors, Cardinal Logistics, Conroy Removals, Farmlands, Transdiesel, Canterbury Steelworks and Humphries Construction building for Reach Media, along with other private developments. Meanwhile, Wigram Skies on the former airbase of the same name in western Christchurch is closer to the city and commands higher prices. With all the new industrial building under way, Greg Mann of NAI Harcourts thinks the tide is turning toward a tenants’ market. He told NBR the cost of land in places within the western city limits, such as Ngai Tahu’s Wigram Skies, has risen to near GENERAL MANAGER CORPORATE SERVICES $300 a square metre compared with Izone Park of near $135 a • Senior Strategic role supporting MD square metre. This means more expensive subdivisions will see more • Change & Transformation Management intensive and smaller units because they stack up financially, NZX listed organisation with turnover circa NZ$450m, 3000 staff globally and 1700 staff in NZ. according to Mr Mann. The amount of large industrial warehouse properties being As a key member of the NZ leadership team, you will be leading a corporate services team of 150 people covering listed in the 1300-1800sq m size category has risen 47% and, accounting and finance, human resources, and administration, that is fully integrated with the business in delivering value above this size up to 2500sq m, the amount of industrial prop- to our clients in what is a challenging and highly competitive market place. erty has risen more than 200%. You will be commercially astute. You will be a strategic thinker and know how to maximise those business systems and The amount of smaller space from 200-400sq m has processes that give us more for less. You will be a great listener, have sound judgement, and be a well-balanced decision- remained tight. maker. Above all, you will be an influencer and a change champion. Your success will be measured by greater team The inflow of materials required for the rebuild has had less satisfaction and sense of purpose, improved productivity, and greater profitability. effect than he anticipated. Mr Mann advises landlords to try to hold on to good ten- This is an opportune time to join this global business with significant growth aspirations. ants and, where possible, face value rents For more information contact Simon Rooney 021 858 919 or Rob Woodward 021 844 598. ERIC CRAMPTON: Optimistic for Christchurch’s long term, pessimistic for the short Auckland www.findrecruitment.co.nz Wellington www.nbr.co.nz/Christchurch Simon Rooney, Kiri Brooks and Rob Woodward [email protected]