A plan to turn a shuttered equine resort into social housing has ended in losses, community anger, and an order for the trustee to pay restoration. Equity Trustees disputes the findings and is weighing its next move.
The big promise
In 2020 the Noongar Charitable Trust backed the purchase of the old El Caballo equine resort at Wooroloo for $12 million. The aim was to build a “proof of concept” for social housing to help tackle homelessness in the Noongar community. Photos with the ABC story show the iconic arched frontage of the former resort.
Another $1.5 million went into repairs. Three years later, with the property still empty, the accommodation portion sold for $4 million, locking in a $4.5 million loss on that slice. The resort portion remains on the market.
What the watchdog found
A retrospective valuation put the property at $5.9 million at the time of purchase, implying a shortfall of more than $6 million. The Charitable Trusts Commissioner, Bevan Warner, found Equity Trustees (EQT) “breached its duties as trustee” when it approved the purchase. He said EQT relied too heavily on representations from a former SWALSC chief executive and did not “independently and impartially” consider the project’s viability -“This obligation was not met.”
Red flags were raised – then waved through
EQT had queried why the property had lingered on the market and whether an independent valuation should be obtained. Those concerns were addressed by a consultant possibly arranged by then SWALSC chief executive Wayne Nannup, who wrote the price represented “excellent value of the site” and that it was “better off saving the cost of obtaining an independent valuation.” The Commission said skipping an independent valuation on a purchase of this size—drawing on about half the corpus—was “unreasonable in the circumstances.” The article also notes a $32 million “scoping” figure whose origin was unclear.
The bill and the blame
SWALSC says the remaining property is “probably worthless”. It estimates $13 million lost on the purchase and resale plus fees, and says the trust missed $8 million in investment growth—hence a $21 million claim against EQT. New CEO Vanessa Kickett called the deal an “imprudent purchase” and an “injustice for our Noongar people.”
EQT’s position
EQT maintains it undertook due diligence. It told the Commissioner the site’s uniqueness meant a standard valuation could not be obtained; it relied on experts put forward by SWALSC, and it weighed the social value of a community‑driven housing strategy. “We disagree with the findings of the report and we are considering next steps.”
What happens next
EQT has until mid‑September to respond to the decision that reparations are owed. The Commission has also referred matters relating to SWALSC to ORIC, the federal regulator of Indigenous organisations.
Why it matters
Concerns raised by community members included the absence of an independent market valuation, a credible business plan, and assessment of ongoing operational funding. The Commissioner underlined that trustees owe beneficiaries a duty to examine proposals “in some depth.” The guardrail is clear: big social ambitions still require rigorous financial testing.
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