A map showing Defence Force land (in green) and the historic Calliope Rd church property (in red circle) overlooking the Devonport Naval Base.
The New Zealand Defence Force has paid $4.2 million for a renovated church with direct views over the Devonport Naval Base, but officials are refusing to say whether they stepped in due to potential security threats, should the property fall into the wrong hands.
Another mystery buyer had been in the running to purchase the deconsecrated St Augustine Church property before the Defence Force (NZDF) spent millions in taxpayer money to secure the site.
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Security analyst Dr Paul Buchanan said the naval base was home to the country’s war frigates but also housed facilities dedicated to intelligence-related activities.
While costly, the purchase seemed prudent, given security concerns and potential “espionage” threats arising from the property’s proximity to the base.
The deal is shrouded in secrecy. The Herald has confirmed that non-disclosure “gag” agreements have been signed between the vendors, the Defence Force and the unsuccessful buyer, which prevent them making some details public.
The property, which sold in July, was the last remaining site in private ownership among a large precinct of land hoovered up over decades by the Crown along Calliope Rd, which borders the defence base and offers a vantage point over New Zealand’s naval fleet.
The purchase price is considerably more than the $1.3m the property changed hands for when it last sold by tender in 2017.
A source with direct knowledge of the 2025 sale said the site was a strategic asset for the Defence Force, given its sensitive location, and it was “very odd” the Crown hadn’t procured it earlier at a cheaper price.
It made sense for it to be secured by taxpayers to protect New Zealand’s national security, the source believed.
“You don’t want members of the public or anybody else [monitoring base activities from the church] in light of what’s going on in the world and the Chinese letting off missiles in the Pacific.”
Lesley Harris and her husband Wayne Kelly were the 2017 purchasers. They have since spent millions of dollars carrying out a painstaking refurbishment of the dilapidated church and hall buildings to create a New York loft-style accommodation package, which they rented out on Airbnb.
Both heritage-listed buildings sit on the 774sq m site and required significant remediation work to make them inhabitable, including earthquake-strengthening.
Harris would not comment on the unsuccessful buyer’s ethnicity or suggestions they may have links to a foreign government.
“I’m under gagging orders by two parties,” she said.
“We were just told we were not to disclose any information on who they were.”
However, Harris confirmed the individual was a New Zealand citizen and their bid would not have triggered scrutiny by the Overseas Investment Office.
She added that the Royal New Zealand Navy had been aware of the other party’s interest and there was “nothing untoward” about the process.
“We weren’t comfortable for personal reasons going with that party.
“They were offering significant money but we just weren’t comfortable with the nature of the deal.”
Harris said the renovation had been a “passion project” for the couple. The church was a Devonport “icon” and they were happy it had gone to the Defence Force and would remain in public ownership.
“They were our babies, we wanted them to stay in the right hands. It made sense for the Defence Force to take it. For us, it felt like it was going to the New Zealand people.”
Harris said prior to the sale, the entire street was owned by the Defence Force apart from the church, which was “smack bang in the middle looking over the naval base”.
She said guests at the rear church building could sit on the upstairs balcony and use binoculars to watch the country’s warships “coming and going”.
Harris said private ownership of a property so close to the base was a difficult situation for the Defence Force, given the nature of its sometimes clandestine activities.
“Let’s face it, we were a massive pain in their arse and a massive security threat.
“Securing it for future generations I think makes absolute sense.”
The Herald asked the NZDF whether it purchased the property to counter potential security concerns and – if it was a strategic asset – why it waited until the property had undergone a luxury multi-million renovation before acquiring the site.
In a statement, an NZDF spokesman said it had no comment to make on the purchase for “security and commercial reasons”.
“From time to time, NZDF acquires land that adjoins or is proximate to Defence facilities to preserve future options and mitigate potential constraints on base operations.”
The Defence Force would not say if it tried to purchase the property in 2017.
The site was a hive of activity last week. A moving truck was parked outside with workers seen carrying furniture, including mattresses, into the refurbished church.
Harris said she understood the Defence Force planned to use the property for “domestic” purposes – likely officers’ accommodation.
A source with knowledge of the Defence Force purchase said that given the strategic importance of the property, it was strange the Navy had not acquired it in 2017, but instead waited for it to undergo an expensive renovation.
“Apparently they didn’t have the budget.”
But the source said the Defence Force would have been forced to spend millions of dollars restoring the buildings had it snapped them up nine years ago, given their terrible state.
Buchanan said that from a security perspective, the purchase seemed prudent, “although the price seems very high”.
He said the naval base was not just a mooring spot for warships. It also housed facilities dedicated to intelligence-related activities and research and development.
That made it a potential target for “espionage purposes”, Buchanan said.
The Defence Force would therefore be “sensitive” about any properties bordering the base falling into the wrong hands, he said.
Some foreign governments “have a well-established reputation for buying up properties adjacent to sensitive military sites, not just in the US but in other countries as well. So there’s a track record of this that undoubtedly the [NZDF] as part of the anglified security alliance would be aware of”.
Lane Nichols is Auckland desk editor for the New Zealand Herald with more than 20 years’ experience in the industry.
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