Mark Hotchin trades down

The Korora Rd property that the Hotchin family trust has purchased for $3.4 million. Photo / Dean Purcell

Former Hanover director swaps one Waiheke Island mansion for another

For most people, shelling out $3.4 million on a plush Waiheke Island pad would be trading up.

But for former Hanover Group director Mark Hotchin it seems a case of trading down.

In November, Hotchin family trust KA No 3 bought 74 Korora Rd, Oneroa, for $3.4m.

The purchase comes after the same trust sold an exclusive 4.5ha property at nearby Boatshed Bay for $14.25m three months earlier.

The property at 46a Matapana Rd, Boatshed Bay, sold well above its July capital valuation of $13m.

Real estate agent Harry Howe would not comment on the new pad at Korora Rd, but marketing brochures described panoramic views over Owhanake Bay and the Hauraki Gulf to Little Barrier Island.

The sprawling concrete and glass home has a heated infinity pool, double sided gas fires, entertainer's kitchen and front-facing bedrooms with sea views. A separate guest area has two bedrooms with en suites plus lounge/kitchen and terrace. The 1.77ha section is landscaped.

Hotchin and five others associated with Hanover companies are being sued by the Financial Markets Authority for allegedly misleading or untrue statements in finance company prospectuses.

The case is due to go to trial in the High Court at Auckland in September and is expected to take up to 12 weeks.

The Waiheke Island purchase was criticised by a former Hanover investor who lost his life savings of $430,000 when the company collapsed in 2008. About 16,000 investors lost more than $500m after the failure of Hanover and the sale of its assets to Allied Farmers.

George Craddock, of Waihi, said news of the Waiheke Island purchase left a sour taste. The Herald on Sunday could not contact Hotchin for comment. His accountants said he was overseas.

Belinda Moffat, from the Financial Markets Authority, said Hotchin's personal assets remained frozen as it continued to have asset preservation orders granted by the High Court over these.

But the FMA did not have any such orders over any trusts associated with Hotchin, and therefore could not intervene in any purchases by the trusts.

QV lists Hotchin as owner of 50 Ohinerau St in Remuera, with Lynne Pamela Hotchin and Jillian Allison. It has a current council valuation of $1.4m.

The FMA has filed civil pecuniary penalty proceedings, seeking a declaration of liability and compensation for investors for more than $35m.

Meanwhile, a property with huge sentimental value to Hotchin is for sale.

The Dunes Golf Resort at Matarangi Beach, on the Coromandel Peninsula, has been listed for sale by international tender.

It is part of a total 48ha of land for sale, including the 18-hole golf course, shop, villas, restaurant and residential plots.

It was Hotchin's flagship development and a plaque to his late father, Lloyd, was installed next to the first green, overlooking the water.

The Matarangi development was valued at just over $26m in 2010. The tender closes in April.