The Government has bought $4.8 million worth of land in central Christchurch in a bid to jump start development of the shopping district.
It is understood to have purchased two sites - one of which it has confirmed. The land is within the area designated by the Canterbury Earthquake Recovery Authority as the city's retail precinct.
The director of the authority's central city development unit, Warwick Issacs, says the Crown was recently approached with the opportunity to purchase the Oxford Terrace site.
Mr Issacs says the land was bought because there was a risk that multiple ownership and plans could lead to competing objectives and fragmented development.
He says the purchase will give other developers certainty to move on with their plans.
Mr Issacs says architectural and urban design consultants are being sought to produce a plan for the retail precinct which will create the best possible environment for private sector development.
However, central city property owners say they would have liked the Government to step in earlier to end a stalemate over the retail development.
Under the Central City Recovery plan, developers must come up with plans for areas of land no smaller than 7500 square metres; that often requires multiple owners to work together.
One property owner, Peter Guthrey, says disagreements between owners have held up plans for his site, and led to at least one major prospective tenant walking away.
Another land owner, Anthony Gough, says if the Government hadn't stepped in, the stalemate could have continued for years.
Tim Howe, from Ocean Partners, says the Government taking ownership will ensure that the site is developed in harmony with neighbouring sites.