Developers’ tower dreams die with mortgagee sale

Wednesday, 16 July 2025

Previous development designs for 48-52 Peterborough S were an apartment tower, left, and a hotel, right. The property’s first mortgagee wants the vacant site sold at auction on August 15.

Following the collapse of plans to build a luxury apartment tower or an 11-storey hotel, a central Christchurch property is up for mortgagee sale.

First mortgagee Extension Capital Partners is selling the vacant land at 48 to 52 Peterborough St, just west of Victoria St, over mortgage arrears.

The site is leased to Wilson Parking.

An artist’s impression of the 148-room, 4.5-star hotel consented for the site, which is now for sale.

The property is owned by Christchurch businessman Doug Walker who, with his previous business partner Andrew Bendemski, drew up plans to build a hotel which would have been the tallest new building in the central city in more than a decade.

Last year Walker’s company Possum Ridge Ltd took over the project as Bendemski’s GCO group of property development companies began to fail. Six of Bendemski’s companies are now in liquidation or receivership.

Possum Ridge’s hotel plan received resource consent in 2024, a hotel operator was sought, and construction was to have begun this year.

Andrew Bendemski is one of the property developers who had plans for the Peterborough St land.

Instead, lender Extension Capital Partners Ltd has moved in and hired real estate firm Colliers to sell the property at a mortgagee auction in Christchurch on August 15.

There is also a second mortgage on the property, to WFT Finance.

An impression of The Verve apartment tower, which was to have been built on the Peterborough St property.

The hotel consent remains valid. It is for a 4.5-star hotel with curved, glazed corners and 148 guest rooms, plus a lobby, restaurant and bar on the ground floor.

Prior to the hotel plan, a Christchurch development partnership comprising John Baigent and Spanbild owner the Gee family had their proposal for a $50 million apartment tower approved.

The vacant property is used for parking.

That plan was for a building called The Verve.

It was to have contained 62 apartments in a wedge-shaped high-rise, but the project did not proceed due to inadequate sales.

The Est@blishment apartment building on Peterborough St, pictured before the earthquakes. (Google maps)

Before the earthquakes the land was home to luxury apartment tower The Est@blishment, which was built in 2004 by developers Richmond and Susie Paynter.

It was demolished in 2012.

The prices paid for the two most recent sales of the property were $4.13m in 2018 and $4.9m in 2024.

The land covers 1830m² and has a central city zoning, which allows for commercial or residential development up to 11 storeys high.

Marketing material for the property describes it as having significant development potential for a new owner, because of the resource consent, the views from height, and the location near Victoria St, Christchurch Casino and Hagley Park.