Wellington developer buys Loafers Lodge building where five died in fire

A Wellington developer has bought Loafers Lodge, the burnt-out boarding house in which five people died more than two years ago.

The building has sat empty, with blackened walls and damaged signage, since the fire in May 2023.

In a statement, Primeproperty Group said it had signed a conditional contract to purchase the property in late 2025.

"Settlement has not yet taken place, and Primeproperty has not taken possession of the site. Settlement is currently scheduled for later this year."

It said at this stage it was undertaking "preliminary investigations and technical studies to understand the site and assess potential development options".

No decisions had been made regarding its future, and no applications for resource consent had yet been lodged.

It would not disclose the purchase price as it was "commercially sensitive".

In January last year, the company bought the abandoned Reading Cinema complex on Courtenay Place, announcing plans to redevelop the building including a new facade, and a new name - "The Court".

Late last year, Esarona David Lologa, 50, was found guilty of murdering five people - Michael Wahrlich, Melvin Parun, Peter O'Sullivan, Kenneth Barnard and Liam Hockings - by deliberately setting fire to the building. He was sentenced to life in prison, with no chance of release for at least 22 years.

Four others, who were involved with the management and operation of the building, have been charged with manslaughter, with police alleging they were responsible for aspects of the building's fire safety.

Primeproperty Group said it was unable to comment on court proceedings or their implications for the transaction.

Wellington City Missioner Murray Edridge has been calling for something to be done with the building for the past two and a half years.

"I was delighted to hear that news today, because it means that hopefully something will finally be done about the Loafers Lodge building," he told RNZ.

It was a source of trauma for those affected by the fire, he said, many of whom remained connected to the City Mission.

"We know every day as they walk past, drive past, catch the bus past the Loafers Lodge building, [it's] such a traumatic reminder of what happened two and a half years ago."

Demolition would be the preferable option, he said, but if it was going to be refurbished, he hoped they would "just get on and do it".

Wellington Central MP Tamatha Paul wanted to see the public kept well informed of any changes to the Loafers Lodge site.

"I think whatever happens with the Loafers Lodge site has to be treated with the utmost sensitivity and care, and that any developments should be well signalled and the public should have as much information as possible so that they're aware of what's going to happen."

She said it wasn't as simple as just knocking the building down and any decisions around the site needed to be carefully though out.

"For some it's a really harsh reminder to just see the building is still standing and to see it as a reminder of the tragedy.

"Also there are [..] people whose very treasured belongings are still in that building."

Whatever the outcome, she said it would deeply affect a lot of people.

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