Abandoned Reading Cinemas site up for sale

Saturday, 13 July 2024

Reading Cinemas has been listed for sale, following a controversial attempt by Wellington City Council to purchase the land this year.

JLL New Zealand managing director Todd Lauchlan, who is handling the sale, said there had been multiple expressions of interest from local and international parties.

JLL had launched an International Expressions of Interest campaign, ending Thursday August 15 at 4pm unless sold prior, he said.

The proposed sale follows months of controversy over a now defunct deal for Wellington City Council to purchase the land, conditional on the US-based owners restoring the abandoned complex, which has become an eyesore in the centre of Wellington’s once buzzing Courtney Place.

The $32 million deal foundered after details were leaked to The Post, sparking a public backlash.

Mayor Tory Whanau, who had initially championed the deal as a win for Wellington, said the outcome was “disappointing, but the right one” after a majority of councillors voted it down.

In a previous statement sent on April 24, Reading International chief executive Ellen Cotter said the redevelopment deal not proceeding was Wellington City Council’s decision.

She said her team was told by the council’s staff just ahead of a meeting that the deal had been called off, with no prior notification or indication from the local government body.

“To say we are disappointed is an understatement.”

She confirmed she was told the deal was over on April 16 ― a week before Wellington City councillors and the public were told.

The complex was closed to the public after it was recorded as potentially earthquake prone in 2019, and has provoked public ire as an eyesore in Wellington’s city centre.

The property is about 1.5 hectares of flat, freehold land, and was on Wellington’s “sought-after” Golden Mile, according to the listing.

It described Reading Cinema’s location as strong and said it was ready for a developer to make their mark on Wellington’s Golden Mile.

“Taking control of 14,964 square metres of freehold land in Wellington’s CBD is an unmissable opportunity for developers seeking a foothold in one of the New Zealand’s most popular destinations,” Lauchlan said on the listing.

“With the new height limit of 42.5 metres, a development at this full height would achieve priceless views over Wellington Harbour and to the northern ranges for potential residential, hotel or office uses.

The location was in the middle of Courtney Place, which would benefit from the planned Golden Mile Revitalisation by Wellington City Council and Waka Kotahi.

Wellington City Council councillor Diane Calvert said the listing was “fantastic news for Wellington”.

She said, despite the investment that the city made in developing events centre Tākina, which was also meant to act as a catalyst for the development of surrounding properties, nothing happened in terms of wider development.

“The area was stagnating because of the failed LGWM programme & the Reading deal. Hopefully the city will be now be 'open for business'.”

She said a great addition to the area would be something along the lines of Auckland’s Wynard Quarter.

Councillor Ben McNulty said on website X, formerly known as Twitter, that it was “bloody brilliant” to see Reading Cinemas’ Courtenay Place site as being listed for sale.

He said the council’s district plan had unlocked huge potential for the site, so all it needed was a developer with the financial capability to make it work.

Lulu owner Jeremy Smith, who is spearheading the Courtenay Place revitalisation project, including recent winter food festival Eat Street, said he hoped the sale was “good news.”

“I hope the price expectation is not too high and we can find a developer with some vision. We have a few ideas on what we would like to see to enhance the area.”

Business Central chief executive Simon Arcus said the council had been apparently misled on the enthusiasm of the owners to hold onto the property.

He said the exciting thing was that there was an opportunity to redevelop an “anchor section” of the popular Central Wellington street.

He said it was a tough time to redevelop property, as the economy was “in the doldrums.

However, this may mean that a developer got a good price for the site, and had the money to develop the property.

“It's one of those things that we would hope would have a snowball effect, so that when you if you get something great in there that revitalises the place up, there's more confidence to invest.”