Quake speeds shrinking of financial district

Sharebrokers have deserted Christchurch's traditional financial district, a move that has accelerated since earthquakes have damaged the city.

Financial firms were already moving from Hereford St, the traditional address for banks, insurers and brokers, before the magnitude 6.3 earthquake on February 22 devastated much of the central business district (CBD), closing it to all businesses.

Brokers said technology allowed service to be maintained to clients through the natural disaster and the new locations being found may be more convenient for clients.

Forsyth Barr has taken out a long-term lease on new premises in the Hazeldean Business Park on Hazeldean Rd, which is just outside the so-called four avenues that define the city's centre. Its office on the corner of Colombo and Amargh Sts was badly damaged. The business park has high quality new buildings and 700 carparks.

Forsyth Barr's director of private client service, John Owen, said the new premises were "quite American" but very convenient.

"It will be easier for clients, to be honest, to park at the door and walk straight in," he said.

Hamilton Hindin Greene was the last stockbroking firm to move from Hereford St, just a few days before the latest earthquake. The firm moved to expensive new offices in Victoria St next to Knox Church.

These were damaged and the firm is relocating again to premises on a short-term lease on Lincoln Rd. A main support column has been blown out in its Victoria St office and the building needed to be made safe before staff can remove items.

"We'd only been there a day and a half," director Grant Williamson said. The company's old office was near the Grand Chancellor Hotel, which has been in danger of toppling.

He said the stockbroking community had become scattered even before the earthquakes. A lot of businesses were moving to the suburbs and "I don't believe they are going to move back to the CBD," Mr Williamson said.

Mr Owen said brokers used to be located near each other and near banks in the days when settlement of trading was by paper. These days it was electronic and brokers could be located anywhere.

He said it was a bit "old school" to talk about a financial district.

Goldman Sachs' head of New Zealand business, John Cobb, said his firm's office was near the city's art gallery in a relatively new building. The company could not access it because it was inside a cordoned off area but the building only sustained superficial damage. It was likely that the firm would return to the building, he said.

"We are in the business of private wealth management. Clients tend to be individuals and for them being in the middle of the CBD isn't necessary," Mr Cobb said.