Major facelift planned for Rotorua's 'Lady of the Lake'

Rotorua's Lakeland Queen is set to sail into a new era, becoming the biggest land-locked vessel in New Zealand.

The paddle steamer has just been bought by the Agrodome and two Rotorua businessmen for an unknown amount.

Dubbed the "Lady of the Lake", the boat has for the past few months been moored at the Lakefront.

Mokoia Island Tours and Cruises - which operated the Lakeland Queen - had tried to attract big-spending tourists but Majpie Investments Ltd, the company behind the Lake Rotorua paddle steamer cruises, went into receivership, owing creditors more than $850,000.

A consortium of local entrepreneurs, calling themselves Lakeland Queen (2006) Ltd, have just settled with the receiver.

Receiver Anthony Harris would not reveal how much they paid for the business, saying it was up to the directors to disclose. According to the receiver's report, the Lakeland Queen had a sale value of $350,000.

Its new directors are Warren Harford, Paul Bowen, Jason Baker, all of the Agrodome and Rotorua's Terry Hammond. The Agrodome has 51 per cent of the shares, Mr Hammond 40 per cent and Mr Baker 9 per cent. Mr Harford, Mr Bowen and Mr Baker are overseas and Mr Hammond could not be reached yesterday.

Mr Harris said Majpie Investments Ltd's secured creditor, Waikato Finance Ltd, which is owed $265,000, would be paid. He did not know what would happen with debts owed to Inland Revenue and 17 unsecured creditors. It was unlikely all of the more than $850,000 owed would be paid back, he said.

That was a matter for either the new owners or the liquidator if Majpie Investments Ltd went into liquidation.

Mr Harford described the Lakeland Queen as being synonymous with Rotorua.

Given other developments in the city, such as the Energy Events Centre, and the expansion of attractions, Rotorua was in a great position to meet the future needs of its community and visitors, he said.

"For these reasons and our immediate plans to extend the overall size of the paddle steamer to accommodate groups, we believe the Lakeland Queen has a positive and profitable future."

The paddle steamer is to have its makeover within the next two months. It will be cut in half and a new 10m section will be fitted, extending its length to 32m.

The upgrade will also increase capacity from 148 to 266 passengers.