David Henderson to buy back first site

Developer David Henderson says he will buy back the first of five central Christchurch properties he sold to the city council in a controversial deal 18 months ago.

An agreement allowing him to buy back the northern portion of the old Para Rubber site in Manchester St is expected to be ratified next month. A sale condition stipulates development must be substantially under way six months after that.

The council bought the northern and southern portions of the site for $5.47 million. One parcel was bought for $1.6m and the other for $3.8m, but the price for the northern portion could not be clarified yesterday.

Council property consultancy manager Angus Smith said the sale price had "yet to be determined".

Henderson sold the five sites for $17m in July 2008 when he was fighting liquidation proceedings against two of his companies. The city council bought the sites to protect them from inappropriate development and gave Henderson the right to buy them back. Some criticised the arrangement as a bailout for Henderson.

The properties have not been revalued since the 2008 deal.

Henderson, in an email to The Press, would not say what will be built on the Para site.

Smith said the deal had yet to be worked through.

"We are in discussions with [Henderson] ... which have been interrupted by the Christmas period, but will be resuming when key staff and lawyers are back in the new year," he said.

At the time of the agreement, the council unveiled plans for apartments, shops, lanes and public spaces on the sites to revitalise the city centre.

Henderson said yesterday he had no "firm plans" to buy back the other properties, but he previously said he would exercise that right.

The next available property is Sydenham Square in Colombo St, which will be offered back to him in December this year.

The southern portion of the old Para Rubber site will become available in December next year, the Penny Cycles site in January 2012 and the Welles St site in the central city in July 2014.