The building has sat empty in Courtenay Place since early 2019 due to earthquake risks, andmost recently became embroiled in a now-scrapped deal between Wellington City Council and parent company Reading International to revive the complex.
The proposed deal was for the council to purchase the land underneath the cinema for $32 million, freeing up cash for the cinema to redevelop the building. Reading could buy back the land for the council’s original purchase price within the first 10 years, meaning the council would not make any capital gains.
The Reading Cinema building in Courtenay Place, Wellington. Photo / Mark Mitchell
The deal was canned in April after Wellington City Council announced it had ended negotiations with Reading International because it was unable to reach the best possible outcome for Wellingtonians.
At the time, Reading CEO Ellen Cotter said it would “take time to consider its options”.
“We have been wanting to redevelop the site and were encouraged when the council agreed to assist by buying the land for $32 million and leasing it back to us. This was not what Reading considered to be a full market price, but was part of a package which included a buyback right.
“We believe the redevelopment would have been very positive for Wellington. We don’t see how the process and its abrupt termination can be good for Wellington City.
“We nevertheless remained committed to Wellington,” Cotter said.
The building was expected to sit abandoned for some time longer, but now commercial real estate agency JLL is listing the prominent property for sale.
A OneRoof listing shows the site is for sale “exclusively by agents at JLL via an international expressions-of-interest campaign”.
The agency has dubbed it “Wellington’s most important development opportunity”.
The plot of land is made up of several sites acquired by Reading Cinemas over the years.
“Development opportunities are extensive, with strong demand in the heart of Wellington City for premium residential developments, retail spaces, restaurants, cafes, hospitality, hotels, and entertainment venues”, the listing says.
JLL New Zealand managing director Todd Lauchlan said, “Taking control of 14,964sq m of freehold land in Wellington’s CBD is an unmissable opportunity for developers seeking a foothold in one of New Zealand’s most popular destinations.
“Crucially, Reading Courtenay Central sits in the middle of Courtenay Place, which will benefit from the planned Golden Mile Revitalisation.”
It’s unknown what the asking price for the property is, but during negotiations Wellington City Council said the land under the building was recently valued at $31.9m.
While the previous deal played out publicly, rich-list property developer and philanthropist Sir Mark Dunajtschik offered to buy the land, claiming the council was making a mistake by getting involved in the site’s redevelopment.
Dunajtschik said if he were in the shoes of Wellington City Council he would walk away as fast as he could.
“However, if I was in the shoes of Reading, I would laugh all the way to the bank.”
Property developer and philanthropist Sir Mark Dunajtschik and Nick Wareham during their submissions to the Wellington City Council in February. Photo / Mark Mitchell
Dunajtschik is no longer interested in the property, saying he doesn’t want to engage with Reading because of the way the company treated him after his previous offer.
Dunajtschik claims he contacted Reading after the deal with Wellington City Council collapsed to see if a solution could be found but was “not given the courtesy of a response”, he said.
“We find them a company we don’t want to deal with,” Dunajtschik told the Herald.
Wellington City Council has confirmed it, too, has no interest in purchasing the building, with a spokesperson telling the Herald the council “is not intending to put in a bid to purchase the site”.
Councillors have applauded the news, saying it opens the run-down site up for much-needed development.
Wellington city councillor Nicola Young, who was “staunchly opposed” to the previous council deal, told the Herald she’s “absolutely delighted” it’s on the market.
“This is really exciting news for Wellington because at last, I hope we get a local person or local company to come in and do something spectacular for Wellington because it is a huge site.”
Young, who lives nearby in Mt Victoria, walks down Courtenay Place daily and said it’s a “very sad area at the moment” due to high levels of homelessness and empty shops.
She said Reading Cinema had been a blight on the area, and if developed well, will transform Wellington.
Mayor Whanau said she was pleased something was finally happening with the site.
“This is a great opportunity for someone passionate about Wellington to do something awesome with such a fantastic bit of real estate.
“I urged Reading to continue to explore development deals. This site has great potential and if Reading is unable to do that, I am very pleased that they are opening up the opportunity for others to do so.”
