The South West Aboriginal Land and Sea Council has spoken out to dispel what it calls "misunderstandings within the community and in recent media articles" surrounding the recent Ombudsman's report on the purchase of the El Caballo properties by Equity Trustees in 2020.

SWALSC chief executive Vanessa Kickett told National Indigenous Times the breach of Equity Trustees duties in purchasing the El Caballo properties is "a serious injustice".

"They must repair the cultural and financial damage to our Noongar People," she said.

In a new statement, SWALSC reiterated its stance that the properties were not bought by or at the behest of the Land Council.

"There is no record of the SWALSC board ever having supported or requested the purchase of these properties," the statement said.

The SWALSC statement reiterated that Equity Trustees "did not seek to verify that the SWALSC board supported the project", noting "Equity Trustees continues to claim that it acquired the properties at the behest of SWALSC".

The Land Council said the total overpayments for the two properties is estimated as "closer to $8 million", having been purchased for a combined total of $12 million, with one since sold for $4 million and the other having gone unsold after "a considerable time" on the market.

A spokesperson for Equity Trustees told National Indigenous Times the firm has nothing further to add "at this time" beyond the statement it provided on its website and as an ASX announcement on 13 August.

"Equity Trustees advises the market that it disagrees with the findings of the report (the Western Australian Charitable Trusts Commission report concerning the Noongar Charitable Trust tabled in the Parliament of Western Australia on 12 August) and considers that it has fulfilled its responsibilities," the Equity Trustees statement said.

SWALSC alleged that in relation to the acquisition of the El Caballo properties, Equity Trustees failed to conduct proper due diligence which, the Council said, should have included "at least" report on the condition of the buildings and associated infrastructure from a building surveyor; a schedule of works required to be undertaken; an assessment of the costs of those works supported by relevant budget quotes; a legal report including, amongst other things, the rights of and obligations to the resident leaseholders of the lifestyle village; and a business plan detailing how the facility would be run and how its operations would be funded.

The Land Council said its Board never approved the purchase of the properties for the purpose of a homeless project.

Referring to page 20 of the Ombudsman's report, SWALSC noted Equity Trustees' claim the "complexity and uniqueness" of the El Caballo properties (one a lifestyle village and the other a resort complex), meant that a standard market valuation that might be used in a typical residential or commercial property context was not able to be attained.

"If Equity Trustees, which is based in Melbourne, had engaged any local independent adviser they would have been made aware of issues relating to the properties," SWALSC said.

The Ombudsman's report noted that Equity Trustees argued the El Caballo acquisition involved the use of trust funds for purchasing properties for a charitable purpose in accordance with the Trust Deed, and should not be assessed through the lens of commercial investment practices.

SWALSC rejected this argument, adding that it "doubts that anyone else would accept this".

The Equity Trustees ASX statement said the firm "remains deeply committed to the purpose and intent of the Noongar Charitable Trust, which was established to support projects that directly benefit the Noongar community".

"We are also committed to working in partnership with the community through the South West Aboriginal Land and Sea Council (SWALSC) to support their efforts where they align with the Trust's purpose," the statement read.

"We will respond to the details of the report in due course and will update the market as required."