High-profile Christchurch developers spoke out against sale of Crown's High St property to rival

Tuesday, 9 August 2016

The Duncan's buildings in High St, Christchurch, some of which were formerly owned by the Crown.

Powerful city developers launched a behind-the-scenes letter-writing campaign in a bid to stop the sale of a group of historic Christchurch buildings to a rival developer.

Documents released under the Official Information Act show developers Philip Carter and Antony Gough were among those who wrote to Crown company Otakaro urging it not to sell the High St Duncan's buildings directly to Richard Peebles and his associates.

Philip Carter suggested the Crown could delay the sale for two years.

Duncan's Lane Limited, of which Peebles is a director, has acquired seven of the buildings.

Carter and Gough are among a group taking legal action against Peebles' $50 million McKenzie and Willis development.

Christchurch property developer Antony Gough argued Otakaro should put the High St properties onto the open market.

Richard Peebles, left, and Danny Whiting, director of Consortium Construction Ltd, in the McKenzie and Willis Development.

* Developers' legal challenge 'symptom' of available city space, expert says

* McKenzie and Willis developer Richard Peebles questions timing of legal action

* Fellow Christchurch developer goes into bat for $50m McKenzie and Willis development

* High St master plan fuels dispute between Christchurch developers**

Letters written in May and June showed the pair wanted the buildings placed on the open market, with Carter suggesting the Crown could delay the sale for two years 'to allow the regeneration of the central city' as a retail destination.

National Party board member Roger Bridge, also involved in the legal action, wrote to the Crown expressing interest in buying the land, but said he had no prior knowledge of Peebles' interest.

In his letter, Carter was concerned Peebles' plan for High St would 'dilute' the retail precinct, where his own $140 million development is being built.

'I am also concerned that this is not an even playing field, and that if there is any such land up for sale by Otakaro, it should be open for anyone to buy unless there are very specific benefits to be gained in terms of the blueprint.

'If Otakaro intend to sell this land, I urge you to undertake a competitive process to allow other parties to buy the land, rather than a direct sale to Mr Peebles, given his contrary plans,' Carter wrote.

Carter himself expressed interest in placing a bid for the properties, adding he would not develop those sites into a 'competing retail hub'.

Duncan's Lane director Kris Inglis said the sale of seven of the 16 Duncan's buildings was confirmed in July.

The company was keen to work with other owners on the street to restore the heritage buildings.

'I can tell you we had an independent market valuation done to support our purchase price,' Inglis said.

He understood the Crown had approaches from other developers.

'I guess our proposal was preferred because it balanced a good commercial outcome with the regeneration of High Street and restoration of the Duncan's buildings.'

He believed Duncan Lane's developments would complement the retail precinct.

'We support and encourage the retail precinct and think that will be a fantastic retail core for the city, but that is not the only location that retail is allowed.

'The city plan encourages diversity and specifically acknowledges the historical significance of boutique retailing on High St,' Inglis said.

Gough argued Otakaro should put the properties onto the open market.

'I am aware that the party that Otakaro is negotiating with to sell these properties to is intending to lease these out as fashion retail premises in direct conflict to the retail precinct

'This buyer, you are negotiating with, has been actively promoting these High Street spaces to fashion retailers who should be part of the core Retail Precinct,' he said.

**READ THE LETTERS:

* OIA response from Otakaro Limited

* Letters between Otakaro and Antony Gough

* Letters between Otakaro and Peter Guthrey

* Letters between Otakaro and Philip Carter (June 10)

* Letters between Otakaro and Philip Carter (July 4)

* Letters between Otakaro and unknown person (name was withheld)

* Emails between Oxbridge Ltd and Otakaro

* Emails from Kris Inglis (June 29)

* Email from Kris Inglis (June 30)

* Letters between Garry Moore and Otakaro**

Gough said prospective tenants were getting offers outside of the retail precinct, which would dilute its strength.

Inglis said the properties were being marketed to retailers including fashion and food retailers.

'Retail is a permitted activity along High Street and we think we can create a very cool, edgy cluster of retailing and hospitality by restoring these heritage buildings and activating the surrounding streets and laneways,' he said.

Peebles noted the buildings were available for sale for many months.

Carter and Gough did not respond to requests for comment.

Central city landlord Peter Guthrey apologised to Peebles after writing a similar letter to Otakaro.

He had been concerned about plans for a High St retail precinct.

In his letter, Guthrey suggested a five year moratorium should be placed on the property sold that it not be developed for retail.

'Once we understood from Otakaro, once we were able to speak to Richard Peebles, we're now entirely happy with what his proposal is.

'I've said to him that I regret that I wrote the letter. I should've perhaps equated ourselves more of what his plan was,' Guthrey said.

'I was really joining in with those others. We're still in a position where the retail precinct is clearly not finished, we're still looking for tenants.'

Guthrey was not involved in the legal action against the McKenzie and Willis development.