Council supports Te Oranganui Trust initiative for 125 Grey Street

Published on 15 July 2025

Whanganui District Council has agreed to lease its property at 125 Grey Street to Te Oranganui Trust, supporting the trust’s vision for a community-focused health and wellbeing campus.

The decision follows community engagement and an in-depth assessment of risks and opportunities for the site, which is the former home of St George’s School.

With reports indicating most of the buildings on the site are earthquake-prone and contaminated with asbestos, the council resolved to move forward with a sensitive deconstruction of the buildings, in consultation with the Whanganui Regional Heritage Trust, and lease the cleared site long-term to Te Oranganui.

Mayor Andrew Tripe says the decision achieves a balance between community priorities and sound financial stewardship, along with respect for Whanganui’s heritage.

“We heard strong arguments to retain the heritage buildings. We also had Te Oranganui present a compelling case for a future that supports our community’s health and wellbeing and we are confident this will deliver long-term benefits for Whanganui. We have also not heard any other commercially viable options for the site,” says Mayor Andrew.

“This is a community organisation with deep roots in our district. By supporting this partnership, we’re making a strong statement – that public land should be used to advance public good.”

Mayor Andrew says the outcome is the right one for Whanganui.

“With no clear plans for what the heritage building could be as well as the cost of strengthening, change of use and fit-out, the cost and uncertainty will linger and continue to see the site unutilised if we don’t make a decision.

“This is a decision that reflects Whanganui’s past, present and future. It’s not just about removing buildings – it’s about making space for something new that honours the legacy of the site while creating services that will support people and whānau for generations to come. From a personal perspective, I have a passion for our heritage and a personal connection to the site, so this was a tough decision.”

Mayor Andrew says the council also heard the community clearly – more than 800 people gave their feedback, and a majority supported this option.

“Importantly, our approach also respects the heritage value of the site by allowing for careful deconstruction, recovery of materials, and heritage-sensitive design in future development. The site’s proximity to other facilities like the Splash Centre, Springvale and Jubilee stadiums and Springvale Park will also be beneficial.”

As part of the lease, the newer administration building facing Grey Street will remain, along with the YMCA Early Childhood Centre with access from London Street, while the older surrounding buildings will be deconstructed. This option is expected to cost around $1.25 million, including asbestos removal, deconstruction, soil remediation and compliance. This will be funded through the City Endowment Fund and will not be a direct cost to ratepayers (revenue from the lease will directly benefit ratepayers).

Mayor Andrew and councillors voted 9-4 in favour of the option to lease the site to Te Oranganui at a full council meeting on Tuesday, 15 July, after being presented with five options. They were:

• ·option 1: do nothing – retain the asset and current use (status quo) - maintain current leases and leave buildings as-is, with no major investment.
• ·option 2: retain and refurbish for future council use – fully restore and strengthen the buildings for a new council-led use.
• ·option 3: deconstruct existing buildings and retain for future council use – remove buildings and contamination, keep the site for future council use.
• ·option 4: divest via sale and purchase agreement – sell the entire property to a private developer.
• ·option 5 (preferred): deconstruct the buildings and lease the site long-term – deconstruct and remediate the site, then lease it long-term (e.g., to Te Oranganui).

The Grey Street property was home to St George’s School from 1927 until the school moved to the Whanganui Collegiate School campus.

Following the move, the site was acquired by Whanganui District Council Holdings Ltd as an investment. Between 2019 and 2021, it was used by the New Zealand International Commercial Pilots Academy (NZICPA), which proposed expanding aviation-related facilities prior to the COVID-19 pandemic.

The council formally purchased the site from its holdings company in 2023. Transitional housing was initially considered for the property, but that proposal was withdrawn after strong neighbourhood opposition.

Two buildings are currently leased by the YMCA, but most of the site sits unused. It currently returns a net annual loss of $49,000.

Extensive assessments show that the buildings are severely earthquake-prone (10–30% of the New Building Standard), with widespread asbestos contamination. It is estimated that it would cost over $12 million to bring the site up to safe, usable standards. Deconstruction, however, can be done for $1.255 million, with a future lease delivering a projected net benefit of $109,000 annually.