Golden Block Developments, a private investment company and
half-owner of the Penrose Building, will pay its share of the
redevelopment to accommodate the expanded Fisher and Paykel
Golden Block Developments (GBD) director Jason La Hood
contacted the Otago Daily Times yesterday to assure Dunedin
city ratepayers the company would contribute to the upgrade
and would not leave it all to the Dunedin City Council, the
other half-owner of the building.
Golden Block Investments, the owner of the building, has 10
million shares, with more than 50% owned by GBD and less than
50% owned by the council.
Both entities have two directors each on the board but GBD
has overall control by owning two more shares than the
The council and GBD would pay half each of the Penrose
upgrade. The majority of the council's costs are expected to
come through the changes to its Wall Street complex.
Dunedin Mayor Dave Cull on Monday announced the council would
spend $2.3 million to help Fisher and Paykel Appliances
create 65 extra jobs by providing extra office space in the
Wall Street complex, including an opening through to the
Penrose Building, upgrading the Penrose Building and making a
contribution to tenant relocation costs.
Fisher and Paykel Appliances, the company owned by Chinese
Whiteware giant Haier, would contribute a similar amount.
Mr La Hood said he did the deal as a director of GBD. The
other directors were not available, but he was in contact
''It was right and proper for us to pay something. When we
knew 70 jobs were at stake, I said, `Let's do it'. It is good
for the city and good for the CBD.
''We knew when putting the deal together we had to make it as
smooth as possible - cut through the red tape.''
Without them moving quickly, the deal could have fallen over,
Golden Block Developments also had an interest in the Golden
Mr La Hood declined to reveal how much money his company was
contributing to the upgrade but said it was nowhere near $1
million. However, the company was also contributing to the
relocation costs of tenants on the first floor of the
building. The upgrade would require some changes to the
He was not sure whether the financing would come out of
company reserves or whether GBD directors, which include
property developer Tony Clear, would contribute personally.