Former psychiatric hospital Lake Alice sold

The former psychiatric hospital Lake Alice has been sold.

Crown Health Financing Agency chief executive Graeme Bell said Lake Alice, near Marton, was sold for an undisclosed sum.

"The new owner does not wish to comment on the sale or the price paid," Mr Bell said.

Eleven tenders were received for the 56 hectare site and the sale price reflected current real estate values for the area, he said.

The cash surplus from the sale would be returned to the Wanganui District Health Board, he said.

The hospital was closed in 1999 as part of a change in direction in mental health policy .

- NZPA