Long-term leases deliver financial and community benefits
Published on 16 October 2025
Whanganui District Council has this month finalised two significant long-term lease agreements that will deliver stable revenue and support sustainable rate levels well into the future.
The leases for 178 Ridgway Street and 125 Grey Street will together generate around $358,000 each year in non-rates income, providing strong financial returns for the district.
Council chief strategy officer, Sarah O’Hagan, says the partnerships are part of a deliberate approach to strengthen the council’s financial sustainability.
“As part of the six-point plan adopted by elected members earlier this year, we’ve been focused on improving the return from underutilised commercial properties,” says Sarah O’Hagan.
“Securing long-term arrangements for these sites provides reliable income and demonstrates that the council can work effectively with business and community organisations to create real value for Whanganui.”
The Ridgway Street property has been leased to New Zealand Post for an initial term of eight years, with two rights of renewal, potentially extending the lease to 18 years. The site, formerly home to Mainfreight Whanganui, will consolidate NZ Post’s operational (non-public-facing) activity from across the city. NZ Post will provide all customer-facing services and parcel collection via Paper Plus in Trafalgar Square.
At 125 Grey Street, Te Oranganui Trust has signed a 21-year lease, with a renewal option of another 21 years in perpetuity. The trust will develop a community-focused health and wellbeing hub on the former St George’s School site, now part of the Whanganui Collegiate School campus.
“We’re pleased to see these properties not only generating strong returns for ratepayers, but also supporting new opportunities for local enterprise,” says Sarah O’Hagan.
“The council’s ability to build constructive relationships with the business community is a key part of Whanganui’s ongoing growth.”
Read more about Te Oranganui Trust’s Grey Street development at: www.whanganui.govt.nz/news