"We were travelling in our mustard-coloured Kombi through Waipukurau on our way to the South Island hunting land, when [real estate agent] Pat Portas called and said, 'We might have found something," recalled Kate.
Perched high on the hilltop with stunning views over Waipukurau and out towards the Ruahine Range, Pukeora - which translated from Maori means "hill of health" - was opened in 1918 as a sanatorium for returning World War I soldiers with tuberculosis, back when treatment for TB was lots of fresh air.
Pukeora became a public sanatorium and about 7000 patients were treated.
From 1958 the complex was redeveloped into a care facility for the disabled and was home for up to 80 long-term residents, some for as many as 20 years.
In later years, the centre began caring for patients with head injuries, before it was closed and placed on the market in 1998.
When the couple came across it, Max said the property had been on the market for 18 months with a price tag of more than $1 million.
"No one knew what to do with the place," said Max, who confirmed the sale of the couple's "tiny" one-bedroom flat in West Hampstead - back when one UK pound was worth more than NZ$3 - was enough to purchase the old hospital and leave "some change left over".
With its elevation and cooler nights, the couple were convinced Pukeora was ripe for winemaking.
By September the couple had started planting grapes, but much like the north-facing slopes of Pukeora, Max said it was a "steep learning curve".
The couple said they were approached early on by Michael Bennet, a winemaker who worked for John Buck at Te Mata, who came on board and helped establish the vineyards and winery.
"He was like a wine-making gift from God," said Kate.
Today the property has 13,000 grape vines over 5ha and produces a range of sustainable wines including the gold-medal winning Pukeora chardonnay.
Pukeora has six dwellings, including two three-bedroom cottages and three flats and can provide "modest" accommodation for up to 120 guests.
By Thursday, the accommodation will be filled with some of the 120 stallholders expected at The Festival.
Max said during The Festival stallholders could be found in every nook and cranny of the large main building at Pukeora.
"There's a stall in every cupboard, even the pool - we drain that and get half a dozen in the pool and half a dozen around the outside.
"There are lots of bewildered faces - part of the charm of The Festival is getting lost."
Kate described the event as an "onslaught of the senses".
"It has its own special smell from all the wood[work] and the candles, soaps and the coffee - the whole place is scented. It's quite beautiful."
Alongside the arts, crafts and food and wine stalls, this year's festival will also feature home-brewing and home-kill demonstrations to appeal to the men.
It opens today and runs to September 10.
Entry is $7.50 for adults and free for children. A $10 four-day pass is also available. See: thefestival.org.nz