Hotchin link to rich land sale

Former CEO of Hanover Finance Mark Hotchin. Photo / Paul Estcourt

A multi-million dollar property, which Hanover Finance founder Mark Hotchin says he "manages", is up for sale in the heart of horse country, Karaka, south of Auckland.

The property is on the same road as Hotchin's business partner Eric Watson's swish five-bedroom mansion Westbury Estate, which has also been on the market in recent times.

Hotchin told the Herald on Sunday the Karaka property was not frozen by the courts like much of his other assets, but he vowed he would not benefit from any sale as he did not own it - he just had "control" of the company that owned it.

"I'm just a director of a company that owns that asset," he said. "I'm just a director who manages it."

He said that the land was not actively being marketed for sale but it was listed with Bayleys.

"The potential to sell it is there if we could," he said, but added again that he would not personally benefit from any sale proceeds.

According to Quotable Value records, the 51ha of land on Batty and Irwin Roads is owned by Karaka Land Holdings Ltd, of which Hotchin is the sole director. Companies run by accountant Tony Thomas own Karaka Land Holdings.

The accountant has other property associated with Hotchin in his name, including a $9.8m holiday home at Boatshed Bay on Waiheke Island.

Records show Westpac has a mortgage over the Karaka property.

Karaka Land Holdings Ltd bought the land for about $3.2m in 2003. It has a CV now of $4m, including land value of $3.7m.

The real estate agent who is selling the Batty and Irwin Roads property is Rex Gazzard of Bayleys, who would not comment.

The land includes fenced paddocks, a three-bedroom cottage, views of the Manukau Harbour and a cowshed. It is currently leased for horses.

Karaka farmer Russell Higgins told the Herald on Sunday that he and his brother, Dennis Higgins, offered about $3m for the property about a year ago.

The offer was turned down as it was not high enough.

Russell Higgins said: "We made an offer and it wasn't grabbed". So he and his brother bought a chunk of land further south.

It is understood surveyors have been asked to investigate breaking up the land into two 4ha blocks and a separate 43ha title so it is easier to sell and could fetch a bigger price tag, possibly $4.5m.

The Securities Commission froze Hotchin's assets in case any former Hanover investors brought claims against the company and directors.