07/09/2026
DID WDC GIVE AWAY CASTLECLIFF LAND?
There has been considerable discussion about Whanganui District Council's sale of three Castlecliff properties to Tupoho Investments Limited for $1.4 million.
Some have described it as Council “giving away” valuable ratepayer-owned land.
WRRA has obtained and examined the valuation, Sale and Purchase Agreement, mortgage information and a subsequent LGOIMA response.
Here are the facts we have established.
The properties were 24 Cross Street, 45 Carson Street and 70 Bamber Street, comprising approximately 8.6 hectares altogether. The Sale and Purchase Agreement was dated 29 June 2022, with a price of $1.4 million plus GST if applicable.
This transaction occurred before the October 2022 local elections, during the term of the previous Council and Mayor Hamish McDouall. It should therefore not be attributed to the present Mayor, Andrew Tripe.
WDC had commissioned an independent valuation from Morgan Property Advisors. That valuation was effective 6 November 2020 and assessed the combined market value at $1.4 million.
The rating valuations applying when Morgan prepared its report were:
24 Cross Street — $740,000
45 Carson Street — $960,000
70 Bamber Street — $122,000
Total — $1.822 million.
Morgan was fully aware of the development potential. The valuation was based on a proposed subdivision of 84 residential lots, and Morgan described intensive residential subdivision as the property's “highest and best” use.
Morgan used three valuation methods. They produced figures ranging from approximately $1.38m to $1.45m, which Morgan reconciled to a market value of $1.4m.
The report even modelled the 84 sections producing a future gross realisation of about $11 million. But after allowing for GST, selling costs, development costs, holding costs and developer profit and risk, Morgan calculated a residual block value of approximately $1.4 million.
That is an important fact.
The latest rating valuations supplied to WRRA total approximately $4.885 million. That large increase understandably attracts attention. However, comparing today's CV directly with a 2020 market valuation can be misleading. Rating value and market value are different measures, and Morgan expressly warned that rating valuations do not necessarily represent market value.
There are nevertheless questions that deserve answers.
The Morgan valuation was approximately 20 months old when the sale agreement was signed. Morgan itself warned that values could change significantly over relatively short periods and recommended that its valuation be periodically reviewed.
Was an updated independent market valuation obtained immediately before the 2022 sale?
There is another interesting part of the transaction.
WDC provided vendor finance for the $1.4 million purchase price. A mortgage registered in September 2022 records Tupoho Investments Limited as mortgagor and WDC as mortgagee, with a priority amount of $1.4 million plus interest.
In its recent LGOIMA response, Council advised WRRA that the entire $1.4 million principal remained outstanding, with principal and accumulated interest totalling approximately $1.652 million at 30 June 2026. The loan was stated to be repayable on 10 February 2027.
We understand that an extension of that repayment date may now have been sought. We have not yet independently confirmed that and therefore make no assertion that an extension has been granted.
So, what is our conclusion?
Based on the evidence presently available, WRRA does not believe the claim that Council simply “gave away $4.8 million of land for $1.4 million” is established by the facts.
There was a professional independent valuation supporting the $1.4 million figure, and that valuation specifically took residential subdivision potential into account.
There are, however, legitimate questions about why a November 2020 valuation was apparently relied upon for a June 2022 sale, whether an updated valuation was obtained, why Council financed 100% of the purchase price, why the full principal remained outstanding nearly four years later, and whether a further extension is now being considered.
Those questions deserve answers — but they should not be confused with conclusions that the evidence does not support.
Democracy works best when all of us work at it.