Kingseat deal takes six years

Tainui's sale of Kingseat Hospital in South Auckland is complete - almost six years after the deal was done.

An out-of-court settlement has been reached with Auckland-based Prince Corporation, which agreed to buy the 60ha former psychiatric facility for an undisclosed sum in 1997.

Tainui Development manager Newa Nuri said the Korean-owned company paid a deposit at the time of purchase, but then tried to pull out of the deal.

"It was around the time the Asian markets crashed and I think they had trouble securing the funds.

"We are glad to see the back of this headache. We have been earning rental from the property, but have not owned it," Mr Nuri said.

Tainui bought the property from South Auckland Health in 1995, when it was proposed as a site for an endowed college.

The price was understood to be less than the $6.8 million Tainui Maori Trust Board paid. The tribe devalued the investment by $2.79 million in 2000, giving it a book value of $4 million.

Mr Nuri would not comment on whether the tribe paid too much for the property.

- NZPA

Further reading: nzherald.co.nz/property