Reading cinema gets $27.5 million for earthquake damage to Courtenay Central

Friday, 23 June 2017

Big Bertha the long reach digger plucks out an SUV from the quake-damaged Reading car park in central Wellington.

Cinema giant Reading International will rebuild on its empty car park lot in central Wellington after pocketing a $27.5 million insurance payout for quake damage.

The United States company revealed in March its Courtenay Central complex suffered torn movie screens, water and projector damage, and fallen ceiling tiles as a result of the Kaikoura earthquake in November.

In addition, the neighbouring car park was deemed to be at imminent risk of collapse, and was demolished.

Demolition of the condemned Reading car park was completed earlier this year.

On Friday, Reading said it received a US$20m (NZ$27.5m) settlement for property and business interruption losses resulting from the 7.8 magnitude earthquake.

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Reading Cinema and surrounding buildings on Courtenay Place were closed for four months following the November quake.

* Insurance claims total $1.84 billion for Kaikoura earthquake

* Quake hits Reading cinema's income hard

The scafold-clad Reading Cinema car park was cordoned off the day after the quake, as the building was at imminent risk of collapse.

* Reading Cinemas confirms quake damage as complex prepares to reopen**

Reading International has reached the insurance policy maximum of US$25 million for the event.

Countdown plans to build a supermarket at the rear of Courtenay Central on Wakefield St.

The payout would fund the construction of a 'new state-of-the-art parking structure', the company said in a statement.

The new car park was expected to increase the amount of rentable space at the centre and improve traffic flows, Reading said.

Reading Australia and New Zealand real estate managing director Matthew Bourke said the earthquake had delayed the timing of previous redevelopment plans for Courtenay Cental, but had also offered an opportunity to 're-imagine the property' and look at other ways to improve the centre.

Countdown supermarket remained committed to the site, Bourke said.

In March, Reading Australia managing director Wayne Smith said the quake had delayed development of the long-deferred Countdown supermarket project, but said 'all parties remain committed' to it.

Initially, Countdown owner Progressive Enterprises planned to build a 3344 square metre store on vacant land at the rear of the centre on Wakefield St.

However, those plans were delayed when seismic issues were identified at the cinemas' car park following the 2013 Seddon earthquake.

The project was also pushed back after Countdown asked for a redesign.

The November quake caused widespread damage throughout Wellington, and the upper South Island.

Three buildings in Wellington have already been demolished as a result of damage, with two others earmarked for demolition before the end of the year.

Wellington City Council told RNZ last week a total of up to 20 Wellington buildings could be demolished due to quake damage.