The French Polynesian government has decided to sell the Rocklands Hostel in New Zealand which had been bought in 2005.
The vice president, Edouard Fritch, says the building in Auckland no longer serves a big purpose.
It was bought by a previous administration and was meant to provide accommodation to French Polynesian students and relatives of those seeking medical care in New Zealand.
The lodge was bought for 5.5 million US dollars but Tahitipresse reports that it will attract a much lower price now and is likely to result in a two-million US dollar loss.
There had been controversy surrounding the premises' status when moves to give them diplomatic status were unsuccessful.