CCDU restructure in the wind???

A very interesting article in the latest Business South article by Chris Hutching: Property Council welcomes restructure:  (turn to page 2.)  Link Here:  http://waterfordpress.co.nz/Publications/Business+South.html

http://www.stuff.co.nz/the-press/news/city-centre/8983334/Changes-for-Christchurchs-rebuild-unit

In particular the statement from Connal Townsend, CEO NZ Property Council that “the CCDU model has been a failure”. The article reports that CCDU is going to detail changes August 1.

The Property Council chief executive, Connal Townsend, says “the CCDU model has been a failure, with too much emphasis on seeking big offshore investors. Instead, it should tap local investment and local expertise about what kinds of tenants will be appropriate.”

Connal Townsend also comments that “landlords whose properties are not purchased by the government are hamstrung by rules requiring them to obtain health-type tenants in the health precinct.”

Have a read, it is interesting that finally someone is talking about the failed model that they have created here.  As well as the costs per square metre of the rentals.  In the Old city “$300/sqm was normal. New buildings would dictate more than $400/sqm and in hot hospitality areas at least $850/sqm.”  There are very few businesses that can sustain rentals in this range.

Nice article by Chris Hutchings.  Good to see some good analysis finally being done.  Just in case the link fails I have popped it below.

That is why we have been going on about the city being a donut.  Boring I know It will be  hollow in the centre.  (This has already happened.)

I am not quite sure what they mean by “CCDU Restructure”, that seems too much to hope for.  Personally I think they should be restructured out of existence!

http://www.stuff.co.nz/the-press/business/the-rebuild/8986580/CCDU-to-hire-new-managers

I am afraid it will take more than a few new managers to change the mindset at the CCDU.

Ho humm a beautiful foggy day.

property council

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