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Dominion Post
July 27 2006

Lake Alice snapped up
by Britton Broun

Lake Alice psychiatric hospital near Wanganui has sold for an undisclosed sum.

The 56-hectare former maximum-security hospital was put on the market by the Crown Health Financing Agency in May and sold yesterday to an undisclosed buyer.

Agency chief executive Graeme Bell said 11 tenders were received for the property but could not discuss the sale price or what the new owner planned for the site. The property, in four titles, had a rateable valuation of $1.38 million. "The new owner does not wish to comment on the sale or the paid price," he said.

Mr Bell said the sale reflected real estate values in the area. The property included 15 two-storey "villas", two swimming pools, an orchard and glasshouses, a workshop, fire station and a maximum-security prison unit. It also came with a water tower.

The hospital, built in 1950, became notorious for the brutal treatment and sexual abuse of patients, the use of electric shock treatment without anaesthetic and injections of the calming drug paraldehyde – sometimes as punishment.

With the nationwide move to care for psychiatric patients in the community, the hospital closed in 1995 and the secure unit was shut down in November 1999, with many patients controversially moved to Auckland's Mason Clinic.

Mr Bell said the new owner was not fazed by the property's history but, given its state, some parts would have to be demolished.

About 185 patients in the hospital's child and adolescent unit during the 1970s received an apology and $10.7 million in compensation from the Government in 2001 and 2002.

The unit's director, Dr Selwyn Leeks, now living in Melbourne, recently handed in his medical licence after an inquiry into misconduct complaints by former Lake Alice patients.

Proceeds from the sale will go to the Whanganui District Health board.