A “scoping” number north of $30 million helped frame a grand vision. A retrospective valuation below $6 million framed the fallout. The gulf between those figures sits at the heart of WA’s El Caballo saga.
The numbers that shaped the deal
The Noongar Charitable Trust funded the $12 million acquisition of El Caballo in 2020 as a “proof of concept” for social housing. A $32 million scoping figure appeared in the narrative, though the report notes it was unclear how that figure was obtained.
Three years later the accommodation portion sold for $4 million after $1.5 million in repairs; the resort parcel is still on the market. The ABC visual package places the site in its horse‑park past.
The watchdog’s view on valuation
A retrospective valuation put the site’s worth at $5.9 million at the time of purchase. The Commissioner found EQT breached its duties, noting it did not “independently and impartially” test the plan and that forgoing an independent valuation was “unreasonable in the circumstances.”
A consultant possibly arranged by then SWALSC CEO Wayne Nannup told EQT the price represented “excellent value of the site” and the trust was “better off saving the cost of obtaining an independent valuation.” The Commission criticised that approach.
EQT’s defence
EQT says it did sufficient due diligence, argues the property’s uniqueness meant a standard valuation could not be obtained, and stresses it considered the project’s social value. “We disagree with the findings of the report and we are considering next steps.”
Why that $32m figure matters
Large, untested numbers can anchor decision‑makers. With the provenance of the $32m figure unclear, an independent market valuation should have been the anchor point.
SWALSC says it lost $13 million on the purchase and resale plus fees, and missed $8 million in growth- so it is seeking $21 million from EQT. It also describes the remaining property as “probably worthless.”
What to watch
EQT has until mid‑September to respond.
Matters relating to SWALSC have been referred to ORIC.
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