Blood Service to Develop Major New Facility in Christchurch

Press Release – New Zealand Blood Service

Media Release December 4, 2012

New Zealand Blood Service to Develop
Major New Facility in Christchurch

The New
Zealand Blood Service (NZBS) is to partner with Ngai Tahu
Property to develop a major new facility on Christchurch’s
old Addington Railway Workshops site.

The layout and size
of the new Christchurch facility will enable the Blood
Service to keep pace with collection and manufacturing
demands, technology changes and increasing regulatory

The new facility will have space for
additional donor beds, which are needed to meet the
increasing demand for plasma. It will provide a more
comfortable environment for the very loyal group of donors
in Christchurch and will enable them to donate more often.
It will also allow space for new donors when they are needed
to meet demand.

NZBS Chief Executive Fiona Ritsma says,
“The new facility is very important to the long term
future of NZBS and to ensure the ongoing safety and security
of the blood supply to the healthcare system throughout New

“Inclusion of manufacturing and testing at the
new facility means that the NZBS regional hub- site model
for ensuring continuity of supply is maintained. This model
was proven after the Christchurch earthquakes when the blood
centre in Auckland was able to temporarily handle
processing, testing and distribution of blood donations for
the South Island”.

Mrs Ritsma is also very pleased with
the partnership with Ngai Tahu Property.

“The selection
of the partner for this project is of particular importance
to NZBS,” she says.

“The Blood Service identified
Ngai Tahu Property as an ideal long-term partner and
landlord because they have a clearly stated purpose other
than the motivation to drive profit. Ngai Tahu Property
understands the importance of community spirit and are in
this for the long haul.”

Ngai Tahu Property purchased
the Addington Railway Workshops land in 1999 as a strategic
asset. Development of two significant Christchurch motor
vehicle dealerships has already been undertaken on part of
the site, on the opposite side of the Blenheim Road

“The proposed facility incorporates a number
of very specialised elements to meet New Zealand Blood
Service’s requirements,” says Tony Sewell, CE of Ngai
Tahu Property.

“Ngai Tahu Property will bring to bear a
wide range of expertise to partner with New Zealand Blood
Service to deliver a facility that meets their current and
future needs,” he says.

Ngai Tahu Property is currently
involved in a number of new projects that are foundational
to the recovery of Christchurch following the devastating
earthquakes of 2010 and 2011.



New Zealand Blood
Service is establishing a new facility on a vacant site at
Lester Lane in Christchurch in partnership with Ngai Tahu
Property as developer and landlord. The facility continues
with the co-location of Donor Services and the Manufacturing
and Logistics functions as is the case with the current
Christchurch facility and the other three NZBS hub sites in
Auckland, Wellington and Waikato.
The building is to be
a purpose designed facility comprised of a donor centre,
manufacturing and testing laboratories along with
specialised warehousing and support function offices.

Since occupation of the current
Riccarton Road Facility in 1998, there have been various
reconfigurations to alleviate space constraints. The
position has now been reached where the site’s capacity
for further expansion, the seismic rating and weather
tightness of the building, and the more problematic donor
access since the earthquakes, add up to an unsustainable
position, which dictates the requirement for relocation.

The layout and size of the current Christchurch facility
represents an operational model that has failed to
adequately keep pace with collection and manufacturing
demands, technology changes and increasing regulatory
expectations. A new facility will therefore represent a
significant step change to appropriately allow for
re-engineering of workflow principles, adoption of new
technologies and address the significant space deficiencies
for general and specialised product warehousing.

In determining a suitable
location for a combined Donor Centre / Manufacturing
Facility, NZBS senior management in Christchurch and the
NZBS Executive evaluated a number of potential sites, some
on the perimeter of the CBD and others at approximately a
similar distance to Christchurch Hospital as the current
Riccarton Road facility. A vacant site in Lester Lane owned
by Ngai Tahu Property was seen as the best available for the
following reasons:
• The location on the south western
corner of Hagley Park provides good access toboth
Christchurch Hospital and to the airport.
• The
location is equally accessible for donors compared to the
Riccarton Road facility, the majority of whom use personal
transport to attend for donation.
• Good public
transport options for those donors who choose to use it
within close proximity.
• The site has a relatively
sound geological survey comparative to other
severelyaffected areas in Christchurch.
• The
“greenfield” construction allows the building to be
engineered using the revised building code seismic design
principles that will be appropriate to the risk profile in
Christchurch (rather than retro-fitting an existing
• The development will be consistent with
NZBS leasing of facilities rather than property ownership.

• The development will follow the NZBS public-private
partnership model that has been successful in Auckland with
Dilworth Trust.
• A partnership with Ngai Tahu
Property, as developer and landlord could
provideopportunities for both NZBS and Ngai Tahu to promote
collaboration between Ngai Tahu and the Crown and
potentially raise the profile of NZBS amongst Ma?ori.

• Opportunity for design and build to NZBS
specification as a turn-key solution.
• Ability to
maintain service continuity during the build and fit-out,
with a phased
occupation of the new facility.

• Compatible with co-location of Donor Centre and
Manufacturing Facility in prime retail
and industrial
location that retains operational synergies, maintains
cohesive team and avoids duplication of

Agreement has been
reached between New Zealand Blood Service and Ngai Tahu
Property on this project and a formal agreement to construct
and lease recording the transaction has been signed by both
Commencement of construction is expected by
July 2013, with a likely completion date by September 2014
and occupation by NZBS by January

The landlord profile is of
particular importance to NZBS
The now well established
Auckland relationship with the Dilworth Trust Board has
assisted NZBS in forming a view as to what key elements are
ideally required for a strategic site
landlord. The
ideal key site landlord characteristics, while not
exhaustive, have been identified as follows:

• Operates a large commercial property portfolio that
affords some scale and operational sophistication,
• A
larger property portfolio holding affords capacity for a mix
of property yields across the portfolio without overt direct
financial impact as would apply to a single or smaller
property landlord,
• Has a clear stated purpose other
than an exclusive motivation to drive profit to the
exclusion of other ‘softer’ considerations.
o For
the Auckland based Dilworth Trust Board that purpose is
financial provision for the Dilworth School achieved through
the prudent management of a commercial property
o For Ngai Tahu Property that purpose is to
provide financial support, via the prudent management of a
commercial property portfolio, by way of a dividend to Te
Ru?nanga o Ngai Tahu for
disbursement within the
wider Ngai Tahu groups.
Both present as understanding the
importance of having a sense of community spirit. This
aligns with the value NZBS places on community spirit and
its importance in securing each voluntary blood donation.

o Prepared to commit to NZBS as a tenant in the
knowledge the NZBS expectation is for a long term business
o Has no intention, in the normal course
of business, to actively trade the NZBS site and in doing so
expose NZBS to a potential revolving door of landlords

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