Wakefield Chambers was sold to the council in 2024. Photo / Mike Tweed
A review of Whanganui Port’s property portfolio is underway, with parts of it likely to be sold.
Port chairman Mark Petersen said the portfolio was mixed, including vacant land, part of the Whanganui riverbed and ground leases.
“Some is non-income producing,” he said.
“We’ve got land over by the airport and various bits of property around the city that don’t fit with our strategy.
“There are also some residential ground leases, which is really not an area we see ourselves operating in for the long term.”
In December, the Chronicle reported the portfolio had increased in value in the 2024-25 financial year from $30.665 million to $31.28m.
The Whanganui Port Limited Partnership (WPLP) is a Whanganui District Council-controlled organisation.
Petersen’s WPLP report for 2024-25 said a portfolio review was expected to be completed this year.
“The purpose of the review is to evaluate performance and strategy for each asset, including potential divestment of poor-performing assets and those public-good and iwi-sensitive assets that are more suited to ownership by the Whanganui District Council,” the report said.
He told the Chronicle this week discussions with the council were underway.
“We have identified which properties we want to keep and which don’t fit.
“The general strategy is to focus our property activity in areas that support port activity.
“The rest, over time, we’ll look to divest.”
He said some of the portfolio was endowment property and, generally, there was a requirement to reinvest in property and “migrate that designation to the new property”.
“But I don’t think that causes us too many problems.”
In 2024, the port sold Wakefield Chambers on Victoria Ave/Ridgway St to the council for $816,000.
Whanganui Mayor Andrew Tripe said last November it was the likely location for a hotel, with the council seeking developers and operators for the project.
Petersen said the port had ground leases on the Whanganui riverfront, including at 19 Taupō Quay, home to the Whanganui Community Arts Centre.
In 2024, the arts centre trust asked the council for rent relief after the annual ground lease increased from $8250 to $23,000 for five years, but it was denied.
“It’s for council to decide, but you would think they are better suited to council ownership because they are more community-related activities,” Petersen said.
“We have a new council, and a new chief executive [Doug Tate] coming in and I’m sure he’ll have his own views when he gets his feet under the table.”
Tate, currently chief executive of Central Hawke’s Bay District Council, will take up the role in late March.
Petersen told the Chronicle in December the port infrastructure project, including the overall budget, was under review “as we work to manage risks such as contamination”.
Asbestos and hydrocarbons have been uncovered as the project progresses.
His 2024-25 report said ground contamination on port developments was typical, but the extent and the impact of the issue had exceeded expectations.
The total project budget is about $50m, with the work being carried out in three stages.
It is the council’s share of Te Pūwaha, the Whanganui Port revitalisation project.
Petersen said this week investing money from property sales into the port project was “not off the table” but it had not been discussed with the council.
“We have to make sure we are following the rules.”
Providing boat storage and encouraging chandlery facilities to move to the port could also be looked at, Petersen said.
“Some property will be easy to sell and some won’t be.
“We don’t have to sell to council, but we are a subsidiary of council, so we will work with them and get guidance on what they want.
“They will be talking to iwi as well so we’re making sure everything is lined up.”
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily Whanganui District Council.