ANZ's low sale price of luxury Hisco St Heliers house raises questions

269 St Heliers Bay Rd, Auckland Photo / Google Maps

The revelation that a house owned by ANZ New Zealand was sold to ex-chief executive David Hisco's wife for a lower than market price is raising more questions about the nature of his employment deal and sudden departure.

A Terranet Summary Report shows that a luxury St Heliers mansion was purchased by ANZ New Zealand owned subsidiary company, Arawata Assets, in 2011 for $7.5 million.

Despite a booming property market over the next six years the property was on-sold to Hisco's wife Deborah Veronica Walsh in July 2017 for just $6.9 million.

As of July 1 2017 the property at 269 St Heliers Bay Rd had a Rating Valuation of $10.75 million, according to Terranet.

Hisco, who earned more than $3 million last year, left his job under a cloud relating to his expenses - including the use of chauffeur-driven cars and private wine storage.

Companies office records show that Hisco's replacement, now-acting chief executive Antonia Watson, was a director of Arawata Assets at the time of the sale.

Fully owned by ANZ New Zealand, Arawata Assets is used by the bank for property transactions. For example in 2018 it entered into a lease agreement with Kiwi Property for a new office building at Sylvia Park.

An ANZ spokesman said the bank bought the house when Hisco arrived in New Zealand.

"The housing allowance that David Hisco received as part of his expat arrangements – which was disclosed annually - was offset by the market rent he was required to pay ANZ for the house.

"The house was eventually sold by the bank to his wife based on market valuations done at the time."

ANZ announced on Monday that Hisco would be departing his $3 million-plus a year job immediately following an investigation which alleged he "mis-characterised" certain personal expenses as business expenses.

Those expenses which ran into the "tens of thousands of dollars" over Hisco's nine-year stint as chief executive included personal use of chauffeur-driven cars and storage of wine in Australia - his country of birth.

ANZ New Zealand chairman Sir John Key said Hisco believed he had an agreement with the previous group chief executive of the Australian bank over the use of chauffeur-driven cars.

Key said the issue had first come to light three months ago after a review of executive expenses was initiated out of the Australian head office.

Hisco stood down from the role on sick leave in May.

This week it was also revealed that connections between ex-Prime Minister and ANZ chairman Key and departing ANZ chief executive David Hisco go further than just their business link.

Last year, Key sold Hisco his beachfront holiday house north of Auckland.

But Key said the deal was not part of the investigations which have subsequently resulted in Hisco's departure.

Property records show 43 Success Court, Omaha was sold by Key and associates to Hisco and associates mid-summer in February last year.

Key was not a director at the time of the St Heliers house sale. He joined ANZ New Zealand as chairman in October 2017.