Smiths City Site to Become New Housing Development in Christchurch

The iconic Smiths City site at 550 Colombo Street in Christchurch is set to undergo a significant transformation. Following the retailer’s liquidation earlier this year, the property has been sold to housing developer Wolfbrook, which plans to construct 120 terraced homes and apartments on the site. The development is expected to cost between $80 million and $90 million.

Founded in 1918, Smiths City has been a prominent name in furniture and appliance retail for over a century. The company operated from the Colombo Street location until its closure, which was officially marked by the initiation of liquidation proceedings on October 1, 2023. The retailer’s unexpected downfall has left behind a staggering $26.8 million in liabilities, with approximately 240 creditors awaiting payment. Liquidators Colin Gower and Diana Matchett from BDO Christchurch have indicated that many unsecured creditors are unlikely to recover their investments.

The site’s previous owner, John Butterfield, purchased the property from Smiths City for $20 million in 2015. He subsequently leased it back to the retailer. Last year, Butterfield placed the property on the market, coinciding with Smiths City’s decision to consolidate operations at its premises in The Colombo mall, located in Sydenham.

Wolfbrook’s director, James Cooney, highlighted the appeal of the central city location. Proximity to amenities such as the One New Zealand Stadium makes the site ideal for residential development. The new housing complex, which will be named Quill Lane, aims to offer homes at various price points. Cooney mentioned that while some units are expected to be priced around $1 million, most will be more affordable.

The transformation of the former Smiths City site signifies a pivotal shift in the landscape of Christchurch’s housing market. As the city grapples with the aftermath of the retailer’s closure, the development promises to provide much-needed housing solutions while revitalizing a historic location.