Trust runs $9.8m Hotchin beach house

Mark Hotchin's Boatshed Bay is one of Waiheke Island's best rural properties. Photo / APN

Hanover and United investors have lost about $500 million but interests closely associated with embattled Auckland businessman Mark Hotchin still control an opulent $9.8 million Waiheke Island beachhead.

The Securities Commission this week won a court order to freeze the businessman's assets and law experts say Mr Hotchin won't be able to sell or mortgage his real estate.

He does not own the island property outright. The land and dwellings are held at arm's length, secured in a trust whose only director is accountant Tony Thomas who said a few weeks ago he was Mr Hotchin's accountant.

Mr Thomas is also on the title for the Hotchins' $30 million Orakei house.

The Waiheke place is one of the island's best rural properties, nestled in a gully flowing down to the iconic Boatshed Bay with its own sheltered crescent-shaped private golden beach.

Dozens of people dipping this summer at the popular neighbouring Palm Beach just out of Oneroa would have no idea that the next bay along,blocked from sight by cliffs and steep hillsides, holds one of the island's best secrets. This real estate jewel is 10 minutes' drive from the Matiatia wharf, around the bay from the colourful kayaks padlocked beneath trees at Palm Beach.

Here, Mark and Amanda Hotchin have holidayed, escaping their city mansion for the warm island waters out of sight of daytrippers and prying eyes.

Rowland Crone and his wife Marvyn put $40,000 into United and $10,000 into Hanover and lost half their money.

Mr Crone said yesterday knowing about the Waiheke place made little difference to him.

"You'd need some legal action before the authorities could get the assets. It's not straightforward. A lot of steps would have to take place," he said.

The island property was bought for $13.8 million in 2005, a time when it had a valuation of just $5.2 million, its Quotable Value shows. The Hotchins decided they needed an even better hideaway and commissioned top Auckland architect Andrew Patterson to design a low-key concrete mansion to replace the big, dated, cedar weatherboard house.

Those dreams never came to fruition but Auckland City issued consent to build and the plans remain on the file.

Truckloads of earth, extensive excavations and large-scale construction were once planned, before the Hanover empire tumbled.

Like the $30 million Paritai Drive clifftop mansion, the Waiheke property is owned by one of the KA trusts.

The hideaway at 46a Matapana Rd, listed by QV as being worth $9.8 million, is owned by KA No 3 Trustee, whose sole director and shareholder is Mr Thomas, the same name on the title to the Orakei house, whose address has been changed to 4 Huriaro Place.

ISLAND HIDEAWAY

*The Matapana Rd property was to get:

*12m inground swimming pool.
*Fully sheltered central courtyard.
*Full-length glass windows.
*Facing north towards bay.
*Luxury wing for guests with family.
*Separate children's bedrooms.
*Separate area for on-site nanny.

Source: Auckland City resource consent application