Anne Gibson

Property editor of the NZ Herald

Hotchin trusts still owners of properties

The unfinished house with seafront Paritai Drive frontage remains unsold. Photo / Janna Dixon
The unfinished house with seafront Paritai Drive frontage remains unsold. Photo / Janna Dixon

Two trusts associated with embattled businessman Mark Hotchin still own Orakei and Waiheke properties valued at $51.8 million, despite attempts to sell.

Quotable Value shows the vast unfinished clifftop Orakei house, where $43 million is being spent, is still owned by a trust and Bayleys Real Estate is yet to conclude the sale of the secluded beachfront island farm worth $8.8 million.

Work has started again in Orakei. A digger is on-site and earthworks are under way on the northern seafront Paritai Drive frontage.

Bayleys real estate agent Michael Pleciak said negotiations were continuing over the Waiheke sale but he was unable to say when that might be closed.

Buyers were due to make their interest known nearly two months ago but the sale appears to be some way from being finalised.

The agency sought tenders by 4pm on March 27 but whether local or overseas parties are in talks to buy the place remains unclear because Pleciak would not reveal the nationality of the parties negotiating to buy the place nor how many people were involved.

However, he did say he was confident that when a sale was concluded, the agency would be in a position to make an announcement but not whether that would be this month or next.

The Waiheke place is one of the island's best, set in a gully that runs down to Boatshed Bay alongside Palm Beach, with its own 100m sandy beach.

The former Hanover director does not own the property outright, with the 4.5ha of land and dwellings secured in the KA 3 trust.

KA No4 Trustee still owns the unfinished $43 million house in Auckland's costliest street, the cliff-top waterfront-facing Paritai Drive.

Built over a number of sections originally with four separate addresses, QV now lists the propertyas 4 Huriaro Place.

That has been at the centre of attempts by Hotchin to make a living while protracted litigation relating to the Hanover Finance collapse plays out. QV still lists the trustee as owning that place, on a 4322sq m section.

KA 3's Waiheke place is on northwest-facing land and contains a two-level, five-bedroom home, a four-car garage and two-bedroom guest accommodation, four boat sheds, boat ramp, spa pool and tennis court.

A new house was commissioned to be built on the site but hasn't gone ahead.

The island property was bought for $13.8 million in 2005, when its valuation was just $5.2 million, Quotable Value records show, but it now has a capital valuation of $8.8 million.

Bayleys advertised the place as freehold land with riparian rights and about 100m of white sand beach frontage.

"A detached garage and guest room is positioned behind the main house and connected by a walkway. It provides approximately 186sq m of floor area over two levels.

"On the ground level is garaging for four cars, storage and work space. The upper level provides two bedrooms, bathroom, kitchen, dining/lounge and decks," Bayleys said.

The Financial Markets Authority has launched civil action against Hotchin and five other former directors of Hanover Finance.

A statement of claim was filed in the High Court at Auckland on March 30. A statement of defence must be filed with 25 working days.

The authority is taking a case against Hotchin, Eric Watson, Greg Muir, Bruce Gordon, Sir Tipene O'Regan and Dennis Broit for allegedly misleading or untrue statements made in Hanover offer documents.

- NZ Herald

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