The earthquake damaged Forsyth Barr House Christchurch property is still within the Red Zone cordon and its future remains uncertain. However, work on the stripping, engineering inspection and scoping of damage and repair and replacement options is complete.

The Forsyth Barr House Christchurch property suffered significant damage in the February 2011 Christchurch earthquake, with the collapse of the scissor stairway system. The building was evacuated and has since remained unoccupied. The building is located in the cordoned Red Zone area. Fortunately there were no deaths or serious injury attributed to the building

The Waitaki Transport workshop and engineering business was sold on 1 April 2011 at fair market value to the incumbent Fleet Director and his partner, and they now operate the business under a property sublease from Waitaki Transport

Ray West, a director since 1998, died unexpectedly in June 2010. Ray was a respected and valued board member and colleague, and his wisdom and contribution will be missed. John Wheelans, a practising Chartered Accountant and businessman, has since been appointed to the directorate.

The Main North Road Oamaru property was sold in July 2009 to a North Otago investor, with Waitaki Transport retaining a head lease on the property. The Edmondton Road Hornby property was sold in the early part of the financial year to an associate of the tenant company.

A machine shop extension to the Oamaru workshop complex was completed during the year, and will be partly sub-leased to Vehicle Testing NZ Ltd. A new 1,000 sq. metres warehouse development at the Main North Road Oamaru property was commenced during the year and has been completed since balance date.

Peter Rae Industries Limited has announced plans for a $670,000 expansion and redevelopment project at its Main North Road Oamaru site.

A 400 sq. metres machine shop and specialist services extension will be added to the existing workshop, taking the total base floor area of the workshop complex to 2,150 sq. metres.

The existing old freight sheds on the 4.7 hectare site will be demolished and replaced with a purpose-built freight & storage facility on a building footprint of some 1,000 sq.metres plus canopy area.

All of the new buildings will be leased to PRI’s head tenant and associate company, Waitaki Transport Limited. Other sub-tenants on the site include Ballance Agri-Nutrients, Fulton Hogan, North Otago Transport, Shell Oil and Detroit Diner

PRI Managing Director, Peter Rae, said that the proposed developments would be completed over the next few months, involving Otago and Canterbury-based contractors and sub-contractors, and were an expression of confidence in the North Otago economy.

“Recent irrigation and farming developments, and the proposed cement works for the area, give us a lot of confidence that North Otago has a sound commercial base and a prosperous future.” said Mr Rae.

Waitaki Transport Managing Director, Paul Denny, welcomed the proposal and said that the new buildings would enable the company to expand and improve its transport and fleet maintenance services to both existing and new clients.

For further information or clarification:

Peter Rae (03) 379 8811 or (027) 432 4221
Paul Denny (03) 437 1728 or (027) 433 0261

Following an approach from an interested party, the Finance House Oamaru property was sold during the year.

The Company has purchased one million shares in 764 Colombo Street Ltd representing an approximate 15% interest in the Forsyth Barr House property located on the corner of Colombo and Armagh Streets in Christchurch.

A holiday home, Hurunui River Lodge, was developed during the year at the Hurunui River Mouth, utilising two relocated buildings from a former resthome at Leeston. The property has been listed for rental on New Zealand holiday accommodation websites.