Transfer of additional Council-owned properties to WDHL

Whangarei District Holdings Limited (WDHL) is a council-controlled trading organisation (CCTO) that is 100% owned by Whangarei District Council.

It was established to provide a dedicated focus on the management and development of Council-owned property where there are commercial or strategic opportunities.

WDHL is governed by an independent board appointed by Council and is required to operate in line with Council's expectations and report regularly on its performance.

Council was consulting on a number of broad categories of properties, referred to as 'tranches'.

The consultation was not asking the community to comment on individual properties. Instead, it asked for feedback on whether Council should continue considering these broader categories of assets for possible future transfer to WDHL.

If Council decides to proceed after considering submissions, further assessment would still be required before any specific property could be considered for transfer. Not every property within a tranche would necessarily be suitable or eligible for transfer.

We own a range of properties across the Whangārei District. Some of these properties are managed directly by Council, while others are in the process of being transferred to WDHL for future management.

We are now considering whether additional categories of properties should be considered for possible transfer in the future.

Before making any decisions, we want to understand community views, concerns and aspirations.

The feedback received through this consultation will help elected members decide whether further investigation of these property categories should continue. 

A transfer to WDHL would not automatically mean a property is sold, developed or redeveloped.

WDHL would be responsible for managing any transferred assets and assessing future opportunities, but any future proposals would still need to follow the appropriate governance and decision-making processes.

Existing legal obligations, including lease arrangements, would also need to be taken into account.

Nearly all the properties being considered currently generate income that helps fund Council activities and services.

One of the key questions Council must consider is whether the long-term financial benefits of transferring properties to WDHL are likely to be greater than, or at least comparable to, the income Council currently receives from owning those properties directly.

Further analysis on this would be required before any future transfers are considered.

If Council decides to proceed, any future transfer decisions would be considered on a portfolio basis rather than property by property.

Council could also decide to keep some properties within a tranche rather than transfer them to WDHL.

WDHL will need to pay tax on any taxable income (i.e. rent after cost) and gains on development.

Whangarei District Council does not pay tax on its property income.

Now that the consultation has closed, we will review all submissions alongside financial, strategic, operational and legal considerations.

Community feedback will form part of the information considered by elected members before any decisions are made.

Council will most likely make the final decision on whether any additional properties should remain under consideration for future transfer to WDHL later in 2026.