New developer behind Timaru’s big-box retail centre claims ‘confusion’ clouding culvert issue

Tuesday, 6 May 2025

The new developer behind Timaru’s The Showgrounds retail centre says it is still aiming to go ahead with the second stage of the development but is awaiting resolution of issues around a problematic culvert.

Issues around the repair and strengthening of the culvert under State Highway 1, near the entrance to the development, have made headlines over the past few years with congestion leading to concerns after it opened in March 2023.

Developer Kerry Knight, of Equinox Group, a relative newcomer to the problem having taken over late last year when former developer Tony Gapes ran out of money, said there was some confusion of what was expected by each party involved.

Last month, the Timaru District Council said it was waiting on Waka Kotahi NZ Transport Agency (NZTA) to make a complaint over delays to work at the intersection before it tackled the issue with the developer who was required to replace the culvert by March 2024.

Knight said neither the developer, the council or NZTA could be singled out for criticism due to the complicated nature of the problem.

“There are just so many moving parts and (for NZTA) so many other projects, and other consents. I feel sorry that they are criticised every time there are delays.

“The reality is, it is genuinely hard. They are trying to do what they can and keep the traffic flowing. It’s not anyone’s fault.”

Knight likened coordinating the three parties concerned to a “perfect storm”.

As an example, he said the previous developer believed a consent issued had been permanent when it was temporary. Confusion also surrounded who would rebuild the road once the culvert work had been completed, he said.

“I don’t know how long (in distance) the road would be. It’s costing a lot of money with consultants. We’ve spent $2m to $3m over and above what we expected to do.

“Rooneys are looking at it, as well as consultants and the council; we’re scratching our heads.”

He did not know how long it would take to sort the matter.

“It’s in the lap of the gods. If NZTA does the culvert, they have to be paid. Then there’s a leaking water main on the other side of the road.”

Meanwhile, work to prepare for the second stage of the development was continuing.

“There’s still a long way to go, but we’re confident enough to keep going,” Knight said.

Equinox Group had been a passive investor in the development, but took over late last year. At the time, Knight said Gapes “needed to refinance around $60 million and couldn’t find it”.

Speaking on Friday, Knight said they had raised the $60m for the project, and $45m for stage 2.

Contractor, Rooney Group, had given a price for the project and Timaru Construction was lined, he said.

“We’re just working with a bank who want details and are looking to support us. All day, every day it’s a lot of work; it’s not fun.”

While viewing the second stage with confidence, Knight said the volatility of international finance could still play a part.

“Stage 2 is going as well as we can do it, but anything can happen.

“Mr Trump, major tenants could pull back, the bank could pull back. The reality is, it’s like a piece of garbage in the sea being tossed around, you might make landfall, or not.

“But there’s enough tenants to get it going.”

He said a number of tenants for the second stage were at varying points in terms of being ready to sign leases.

They included tenancies for up to four of the 12 smaller shops planned, six out of eight “majors”, as Knight called them, and one big major anchor.

A Kmart spokesperson confirmed it had “no formal announcements’’ to make on any new stores when contacted.

Knight said the first stage, which comprised tenants Bunnings, and a Woolworths supermarket among others, was “tracking well” with two smaller retail spaces about to be taken up.

Last month, the company behind a proposed bottle store at the development said it had put its application on hold after it drew about 140 objections.

Knight said he holidayed in the Mackenzie Country where people told him they loved the new development.

“They say why not have a children’s playground or a hairdresser?”

He said these people would normally have travelled to Ashburton.

“We’ve diverted them from Ashburton and they’re going into town as well to Ballantynes.”

The large stockpile of dirt at the site would be dealt with once stage 2 started as the soil would be used as part of that development, he said.