THE PRESS - Ex factory site to house seven corporate and office buildings.

Expanding southern real estate company Simes will become one of the first two anchor tenants in the $80 million Hazeldean Business Park on the former headquarters of PDL Industries. Work will begin clearing the site for construction next week, according to Layne Harwood, the owner of Simes with his wife Linda Coleman.

They bought Simes nearly two years ago and recently acquired the boutique residential business of Belle in Queenstown. Another significant acquisition is expected to be announced in a couple of weeks. This follows the property management appointments of Andy Bell as business development manager and Paul Melton as finance manager (commercial property). They will streamline management systems across Simes’ $140 million portfolio to reduce administrative work for the company’s nine property managers and 120 staff.

Meanwhile, Simes will become an occupier in one of the first three buildings on the Hazeldean St site. The building will be owned by a trust associated with Layne Harwood and Linda Coleman and the three level 1924sq m of space leased to the firm at about $250/sqm plus $40/m2 operating expenses. Simes is also leasing other proposed buildings on the 2ha Hazeldean Business Park site, which is an $80 million (completion value) joint venture between Alan Stewart of Calder Stewart, and Miles Yeoman and Richard Diver of Sterling Properties.

Calder Stewart bought the property two years ago following the sale of PDL to multinational, Schneider, which has subsequently closed the manufacturing business on the ex-PDL site.The proposed seven buildings at Hazeldean Business Park will be available for lease and for purchase either outright or on a strata titled basis. Each level will be advertised for sale at approximately $2.5 million per 800sq m floor plate.

Mr Harwood said a second office building that will be built as stage one of the venture will be occupied by the developers and their companies. Negotiations are underway with potential occupiers of the third building of three levels with 4240sq m. “We’re talking to financial services firms and consulting companies – more of the local corporate type tenants than those in Show Place (another fringe office development in nearby Addington) which has more national tenants including state owned enterprises,” Mr Harwood said.

Hazeldean Business Park is on the fringe of the central business district about five minutes’ drive away. Similar locations have become increasingly popular for office development in Christchurch because land and costs (rates) are cheaper. For example, parking in inner city premises is around $50-$60 a week compared with around $15-$20 at the new business park.