Radio New Zealand - Te Reo Irirangi o Aotearoa

Shopping centre insurance claim settled

Updated at 7:38 am on 9 February 2012

Listed property investor NPT says it has received a full and final settlement from its insurers for earthquake damage and business interruption at the Eastgate shopping centre in Christchurch.

NPT says it accepted a cash offer of $18.05 million, including GST and settlement is expected before the start of March.

NPT made no insurance claims for the quakes in June and December, because the damage was within its insurance excesses. It expects the total cost to be about $1 million.

The company says negotiations are still continuing about a claim for damage at Natcoll House in Hereford Street, but independent appraisals indicate it may be uneconomic to repair the building.

The building was valued at $11.9 million at the end of September, and business interruption insurance will continue until Februrary 2013.

NPT shares were unchanged at 52 cents on Wednesday.

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