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A Wellington property company's failure to settle the $20 million Napier Hospital site sale is a concern, says a local MP.
Primeproperty were expected to pay $18.5 million to the property's owner, the Crown Health Funding Agency, on April 30 for the 4.6ha site on Napier Hill.
They missed the deadline. Primeproperty have paid a $1.5 million deposit and retirement apartments were likely to be built on the site.
CHFA chief executive Graeme Bell would not comment on why the settlement hadn't gone through, citing a confidentiality agreement.
He said a settlement date is "exactly that" and this arrangement was no different from one any person would experience if they were buying a property.
Bayleys Napier commercial agent Eoin Carty said it wasn't usual in a commercial property deal for the settlement date to be missed.
He said failure to make the settlement would normally result in the buyer being served with notices and penalty interest could be accrued.
Mr Carty said there could be several reasons why the property hadn't been settled. The traditional one was funding issues.
The sale of Napier Hospital has been contentious from the outset, with a Napier group fighting it through the courts.
The proceeds of the sale, and where they should be spent, is another sticking point.
The $12m left over from the sale was meant to be spent on Napier health services.
Local MP Chris Tremain said the money had been written into the health board's accounts as extraordinary earnings last year.
He is now concerned if the sale falls through the board would have to write the money down.
Primeproperty Group director Eyal Aharoni could not be reached for comment.