Napier hospital site sold – new mental health unit announced

Health Minister Tony Ryall says the old Napier Hospital site, on the market since 2006, has finally been sold. The proceeds will help Hawke's Bay District Health Board build a new mental health unit for the people of Hawke's Bay.

Mr Ryall says Todd Property Group has bought the hospital site for an undisclosed sum. In a related transaction TPG has sold land at Ngunguru Spit in Northland to the Department of Conservation and is using the proceeds of that sale to purchase the Napier Hospital site.

"It’s a win, win, win for the Department of Conservation, Hawke's Bay District Health Board and the people of Napier," says Mr Ryall.

"This means the Crown Health Financing Agency, which has managed the deal, will have realised in excess of $13 million from the sale of the site. It will have returned close to $9 million to Hawke's Bay District Health Board, after deducting holding costs incurred since the property was transferred to it by Ministerial directive in 2003.

'I am pleased to be able to announce the Ministry of Health will also contribute $5 million towards the new mental health unit, " Mr Ryall says.

This allows Hawke's Bay District Health Board to use its proceeds from the sale, around $5.1million, as well as internal resources of around $10 million, to redevelop its mental health unit at the DHB's Regional Hospital site in Hastings.

'This is great news for Hawke's Bay. Replacing the old mental health unit has been a high priority for quite some time. In 2009 I visited the current unit and I strongly support its replacement.'

Napier Hospital was closed in 1997.