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CentrePort to demolish BNZ building after reaching $170M insurance settlement

CentrePort will have the BNZ building on Harbour Quays demolished after reaching a $170 million settlement with its insurers.

by Paul McBeth

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The building has been vacant since the November 2016 Kaikoura earthquake and tenant Bank of New Zealand quit the lease in March over the property’s uncertain future.

CentrePort today said it has settled with insurers for a lump sum covering the BNZ building, Statistics House, Shed 35 and repairs to other properties including Customhouse and Shed 39.

“We plan to demolish the former BNZ building, based on the advice we have received as to its condition,” chief executive Derek Nind said.

“We need a larger footprint as we work through our regeneration plans and reconfigure our land and berth capability.”

Last week the regional council-owned company reported a profit of $38.1 million on a 16 percent increase in revenue, including a $10.9 million net gain from insurance proceeds. A year earlier it reported a $2.3 million loss when $73.8 million of insurance proceeds didn’t cover revaluation losses and a $63 million provision for the port’s land resilience.

Greater Wellington Regional Council’s investment arm, WRC Holdings, forecast insurance recoveries of $375 million in its statement of intent for the 2019 through 2021 financial years. The company estimated rebuild costs at $343.5 million over that period while noting the forecast was significantly uncertain.