'Iolani School has purchased 5.5 acres of land adjacent to its campus for $23 million, the school announced yesterday.

The parcel was bought from Lum Yip Kee Ltd. and Lum Chang Tai Inc.

The school said it planned to use the property for possible campus expansion.

Headmaster Val Iwashita said that while some conceptual plans exist, nothing has been finalized and the school has no plans to increase enrollment.

"Any potential development of this property is still years away," Iwashita said in a statement.

The property consists of 21 contiguous parcels bounded on two sides by La'au and Date streets, and on the other two sides by the 'Iolani campus, The Royal Iolani and the Regency Tower condominiums.

Included in the property is a private roadway (La'au Street), four vacant lots, two individually owned apartment buildings and nine cooperatively owned apartment buildings: Diana Apartments, Lani Home, Laau Gardens, Iolani Gardens, Princess Anne Apartments, Canal House, Hale Laau, Hale Laau II and Iolani Banyan.

The two individually owned apartment buildings and nine cooperatively owned apartment buildings are held under separate subleases.

The master lease and the subleases covering the leasehold improvements all expire Dec. 4, 2012. Lum Yip Kee is selling the entire area and the fee will not be available to current owner-occupants for purchase.

The school said that as portions of the property are converted to school uses after 2012, it plans to continue to rent units, consistent with the long-term development schedule of the property for school purposes.