11 December 2025

Adam Irish
[FYI request #32438 email]

Tēnā koe Adam

Thank you for your request dated 1 October 2025 to Kāinga Ora – Homes and Communities under the
Of icial Information Act 1982 (the Act) for information regarding the disposal of the Dixon Street Flats
in Wellington.

Background
The Dixon Street Flats is an 11-storey building with 117 units used for social housing for over 80
years. Its age and condition meant significant upgrades were needed.

Estimates indicated that the cost to remediate and structurally strengthen the building to above 67%
New Building Standard (NBS) for use as social housing could be up to $1.07 mil ion per unit (total of
$125 mil ion). If remediation was undertaken without structural strengthening (retaining the building at
40% NBS), the estimated cost was $692,000 per unit (total of $81 mil ion).

The holding costs for security and maintenance were also high. After considering these costs, Kāinga
Ora decided selling was the best option.

Under the Right of First Refusal (RFR) process in the Treaty settlement, Kāinga Ora was legally
required to offer the property to iwi first. Negotiations resulted in a sale price of $1.04m (below the
$3.5m business case minimum) to achieve a quick sale and avoid delays and extra costs. Market
testing showed very limited interest; only the iwi’s development partner appeared genuinely interested.

As outlined in Document 10 – Board Minute: Dixon Street Sale (28 April) – the Kāinga Ora Board
approved the sale of the Dixon Street Flats at a lower price due to heritage restrictions, significant
repair costs, valuation challenges, and the overall risk profile of the building.

For ease of reference, we have summarised and grouped your questions according to the nature of
our responses. Questions that can be answered with the information available are presented first,
followed by those where the requested information is refused, and finally, questions that fall outside
the scope of the Act because they express personal opinions rather than seek of icial information. Our
responses are set out under the following headings:
  •  Substantive responses (questions 1-2, 5–14, 17, 19, 24, 26–29)
•  Information refused (questions 15, 16, 18, 20–22, 25, 30–33)
•  Questions outside the scope of the OIA (questions 3, 4, 23, and 34)

Substantive Responses

Appendix A (page 4) lists the 10 documents that fall within the scope of this request.

1. Right of First Refusal (RFR) obligations
Al  legal advice is withheld under section 9(2)(h) of the Act to maintain legal privilege. Five documents
(Appendix A) cover internal memoranda and briefings on RFR obligations and Ministerial awareness.

2. Was Kāinga Ora required to sel  at market value?
No. The RFR process under the Port Nicholson Claims Settlement Act 2009 applied, and Kāinga Ora
was bound by it.

5–10. Offer process and iwi eligibility
Only one iwi (Taranaki Whānui) held RFR rights under the Act. Property was offered solely to this iwi
as required by legislation. Kāinga Ora tracks RFR obligations via systems like Information Delivery
Portal (IDP) dashboards, GIS mapping, and Te Haeata.

11–14. Purchaser identity and eligibility
The Dixon Street Flats were sold to Taranaki Whānui Limited on 25 June 2025 (settled 14 August
2025) for $1.04m under RFR. This entity is the commercial arm of Port Nicholson Block Settlement
Trust, the mandated settlement entity.

17. Monitoring or clawback rights post-sale
None were considered.
19. Valuations and pricing
Valuation report (Document 6) dated 21 Jan 2025 by Jones Lang Lasalle released in part. Some
information within this document has been withheld under section 9(2)(a) of the Act in order to protect
the privacy of natural persons.
24. Governance and decision-making
Four documents identified (Board minutes and papers). One released in full, others as excerpts under
section 16(1)(e) of the Act. Some information within these documents have been redacted as out of
scope and withheld under 9(2)(a) to protect the privacy of natural persons, including that of deceased
natural persons.
26. Treasury or HUD input
Treasury was consulted on risk profile and purchase price, not financial implications. Accountability
rests with Kāinga Ora Board.
27–29. Ministerial awareness
Consultation with the Minister on the approach for Dixon Street began in October 2024 and the
Minister was kept regularly informed of progress. I can confirm that the Minister was advised of the
sale of the Dixon Street Flats on 17 July 2025. This advice is contained in Document 4, titled Status
Reports and Ministers Monthly report January 2025, which is attached for your reference.
Under section 9(1) of the Act, I am satisfied that the need to withhold the information is not outweighed
by public interest considerations.
Information Refused
Questions 15, 16, 18, 20–22, 25, 30–33 declined under the following sections of the Act: 18(e), 18(d),
or 18(f) (information does not exist, is publicly available, or would require substantial collation).
In response to question 20 the building's Council Valuation your request for this information is refused
under section 18(d) of the Act as the information requested is publicly available on the Wellington City
Page 2 of 4

Council website here: https:/ services.wellington.govt.nz/property-
search/account/tqEGEidHEhTSoPc9RU7p4ny1/
Questions Outside Scope
Questions 3, 4, 23, and 34 express opinions rather than request official information. In accordance
with the Act, the information must already be held by Kāinga Ora, and there is no requirement for
Kāinga Ora to form an opinion or create information to answer a request in the form of personal views.
Summary of Questions
Question Number
Topic
Decision
1
RFR obligations
Released in part
2
Market value requirement
Released
5–10
Of er process and iwi
Released
eligibility
11–14
Purchaser identity and
Released
eligibility
17
Monitoring rights
Released
19
Valuations
Released in part
24
Governance
Released in part
26
Treasury/HUD input
Released
27–29
Ministerial awareness
Released
15,16,18,20–22,25,30–33
Various
Refused
3,4,23,34
Opinion-based
Out of scope

You have the right to seek an investigation and review by the Ombudsman of my decision on your
request. Information about how to make a complaint is available at www.ombudsman.parliament.nz or
Freephone 0800 802 602.

Please note that Kāinga Ora proactively releases its responses to official information requests where
possible. Our response to your request may be published at
https:/ kaingaora.govt.nz/publications/official-information-requests/, with your personal information
removed.

Nāku noa, nā

Daniel Soughtton
Deputy Chief Executive – Central

Page 3 of 4

Appendix A
Document
Description
Responds to
Decision on
OIA sections
number
question
release
applied
1.
Ministerial
1, 27, 29
Release in part.  n/a
Briefing Major

Out of scope
Projects

information
Wel ington
redacted
2.
Further
1, 27, 29
Release in part.   n/a
information on

Out of scope
Major Projects in
.
information
Wel ington
redacted
3.
Ministerial
1, 27, 29
Release in part.   9(2)(a)
Consultation

Briefing Note -

134 Dixon Street
4.
Status Reports
1, 27, 29
Release in part.  section 16(1)(e)
and Ministers

- information
Monthly report

provided as an
January 2025
excerpt
5.
Update on Dixon
1, 27, 29
Release in part.  9(2)(a)
St divestment

Out of scope

information
redacted
6.
Valuation - 134
19
Release in part.  9(2)(a)

Dixon Street, Te

Aro, Wel ington

(21 January
2025)
7.
Minutes for the
24
Release in part.  9(2)(a)
Assets and

section 16(1)(e)
Investments

- information
Exec Committee
provided as an
and Investment
excerpt
and Delivery

Committee
8.
Business Case
24
Release in part.  9(2)(a)
to Divest 134

Out of scope
Dixon Street

information
Wel ington
redacted
including

appendices
9.
Board paper -
24
Release in part.  9(2)(a)
Dixon St Sale -

April 2025
10.
Board Minute -
24
Release in ful .
n/a
Dixon St Sale 28
April

Page 4 of 4

Document Outline