The Government has reached final settlement for the purchase of Dunedin’s Cadbury chocolate factory – half of the site for the New Dunedin Hospital - says Southern Partnership Group Chair Pete Hodgson.

"In May Health Minister Dr. David Clark announced the Cadbury site and parts of surrounding blocks had been selected for the new hospital under the Public Works Act.

The Minister advised the Government was in negotiations with Cadbury owners Mondelez and had begun the process of purchasing the city block next door to the North – the “Wilson’s block”.

Mr Hodgson says negotiations with Mondelez have now successfully concluded and the Ministry of Health will take over the Cadbury site in November this year. The purchase price remains commercially sensitive.

"This means over half the land required for the new Dunedin Hospital has now been purchased. Negotiations are continuing with the eight owners of land in the so-called "Wilsons' block."

The first phase of the Detailed Business Case for the new billion dollar hospital is due to be completed in the middle of this year.