Victoria University has sold its former College of Education campus in Karori, Wellington to a retirement village developer.
Victoria University formally paid the Crown $10 for the Karori campus in 2014, but had been charge of it, and responsible for its assets and liabilities, since it merged with the College of Education in 2004.
In August last year it announced it would be selling the block.
Victoria University vice-chancellor Grant Guilford has said the university spent more than $1 million each year on maintenance on the campus despite not using it for teaching.
The university announced today it had sold the campus to Ryman Healthcare, which will convert the land and buildings into a retirement village.
Mr Guildford says the tenders received were assessed against community outcomes and commercial arrangements.
The Ministry of Education had hoped to buy some of the land to build a technology hub for nearby primary schools, but its offer was declined.
The university said no offers were received for the campus buildings from public sector organisations.
Two early childhood centres on the site were transferred to the Ministry of Education, and Wellington City Council has bought land to provide car parking for the swimming pool next door.
Proceeds from the sale of the rest of the campus will be used for further strengthening the university's buildings and to build modern facilities for Victoria's Faculty of Education.
Ryman's plans for the retirement village include independent and serviced apartments, a hospital, rest home and dementia-level care. The company said it woiuld consult with the community, local iwi and Heritage New Zealand.