A prime slice of real estate in Auckland's most exclusive suburb has come on the market in a $10 million mortgagee sale.

Two properties on Argyle St in the central suburb of Herne Bay, adjoining New Zealand's most expensive road, the mansion-lined waterfront hideaway of Cremorne St, have surfaced for a combined sale.

A mortgagee sale happens when obligations under not met the terms of a mortgage.

The Herald understands that the current leasehold owners – former Auckland venture capitalist David Carlyle Hayde and partner Adele Margaret McLay – moved to the UK in 2006.

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The couple now live in London where McLay is a "business growth strategist/adviser" and motivational speaker.

They could not be reached for comment.

Property experts say it's rare for such an expensive property to come up for mortgagee sale.

Included in the listing is a sprawling 1920s character bungalow, with six bedrooms and harbour views. It has a 2017 rating valuation (RV) of $5.1m.

Available for tender separately or together with the house is a two-level 1960s block of nine flats, which has a RV of $4.4m. Photo / Supplied
Available for tender separately or together with the house is a two-level 1960s block of nine flats, which has a RV of $4.4m. Photo / Supplied

Available for tender separately or together with the house is a two-level 1960s block of nine flats, which has a RV of $4.4m.

The properties cover 2018sq m of prime, secluded land.

When contacted by the Herald, Barfoot & Thompson estate agent Philip Kerr said he couldn't comment and directed enquiries to PR firm, Network.

Barfoot & Thompson estate wouldn't comment on the background to the sale.

The mortgagee tender closes on November 13.

One man who lived in the units, who did not wish to be named, said he had been there for years and was recently reassured by the landlord all was well.

The property had been on the market for about two years and it had been taken off recently, he said.

But he said any changing of hands did not worry him as it did not matter who owned the property.

"It doesn't bother me," he said.

"It's a good area and I've made a lot friends around."

Included in the listing is a sprawling 1920s character bungalow, with six bedrooms and harbour views. It has a 2017 rating valuation (RV) of $5.1m. Photo / Supplied
Included in the listing is a sprawling 1920s character bungalow, with six bedrooms and harbour views. It has a 2017 rating valuation (RV) of $5.1m. Photo / Supplied