buy a mansion on a private island, a court heard yesterday.

Mr. Michael DeGroote, who agreed to buy Perot's Island for $8.5 million, also pushed for rugs and drapes to be included in the sale, Supreme Court heard.

The insight into Bermuda's second-biggest residential property deal came from the owner of Perot's Island, super-rich heiress Marion MacMillan.

Mr. DeGroote is fighting her in court for the island, saying she must stick to the deal they made in 1990.

She admits she signed an agreement, but says she was pressured into the deal by realtors and has changed her mind. She wants to use the island as a counselling centre.

Yesterday the glamorous 60-year-old told the court of a trip Mr. DeGroote took to the island with lawyers to discuss furniture and other items.

She said she stayed at her gatehouse on the mainland, taking calls from her lawyer, Sen. Jerome Dill.

"I remember clearly becoming more and more upset by the numerous requests for rugs, curtains and even shower curtains,'' she said.

"It was not my understanding that these were to be included. I do remember saying to Jerome Dill: `If Mr. DeGroote continues like this I would like to cancel the contract'.

"Mr. Dill tried his best to pacify me and to tell me that items such as a $16,000 rug were minor compared to the overall price.'' The two-week-old trial has already heard from Mr. DeGroote about "endless discussions'', which also involved a Jacuzzi. He said he agreed to drop his claim on 95 percent of the items he thought came with the island, and then "everyone seemed happy''.

On December 17, 1990 the final sale agreement was signed. The completion date was set for April 30, 1991.

But she had a "change of heart'', and on April 5 pulled out of the deal. "My intentions were evolving and the island was taking on a new meaning for me.

"By that time I was present on the island when two groups of classes had assembled with a common idea or goal of helping people to recover from past wounds.'' Mrs. MacMillan had earlier told the court she was a physically abused child.

With this background, she said, she feels it "more and more important to make this kind of mutual sharing possible for others.

"I had opened the island to receive these guests and the first class consisted of 15 persons. It thrilled me to see the transformation taking place.

"Perot's Island had become a magical island.

"We transformed a small space into what is called a meditation room for anyone who wished to be alone.

"I felt there was a real need for this kind of thing in Bermuda.

Bermudians were welcome. There's a large representation of people from mixed backgrounds.

"I felt that at last the island had found its purpose.

"It was lovely and more than I had ever expected it to be at the time.

"Friends were enjoying it and certainly appreciating the serenity, the beauty and the confidentiality that surrounded such a setting.'' She added she offered to compensate Mr. DeGroote for his inconvenience and disappointment.

But Mr. DeGroote was "very angry'' and told her he would "go as far as he needed to'' in getting the island.