Millionaires make peace in luxury-home rent quarrel

92 Paritai Drive, Orakei, Auckland. Photo / Richard Robinson

A squabble over unpaid rent between two of the country's most successful businessmen has been settled out of court.

Westpac head George Frazis, New Zealand's highest-earning executive, was taken to the Tenancy Tribunal for allegedly breaking his lease at Auckland's most expensive rental address, 92 Paritai Drive in Orakei.

He was taken to court by his neighbour and property mogul James Kirkpatrick, who lived in a four-bedroom mansion next door at No 90 with his wife Gilda. Mr Kirkpatrick, 80, owned the clifftop mansion where Mr Frazis was staying and allegedly claimed the Westpac boss had abandoned the property.

He was seeking around $134,000 to cover the remainder of the lease.

But instead of creating the spectacle of two multi-millionaires battling in a tribunal usually reserved for minor disputes, the two men came to a private settlement yesterday.

Mr Frazis and Mr Kirkpatrick did not attend the tribunal, and Mr Kirkpatrick's lawyer informed the court that a hearing was not necessary.

Neither of the parties revealed how much the settlement was worth.

The two men signed a privacy agreement which prevented them for commenting publicly.

Mr Kirkpatrick told the Herald that no bitterness lingered between owner and former tenant.

"It's a perfectly normal situation ... and all resolved."

Mr Frazis' lawyer, William Akel, a senior litigation partner at Simpson Grierson, said he could not comment on any part of the case.

The dispute arose when Mr Frazis, 46, reportedly wanted to leave the mansion after only 11 months of a two-year fixed-term lease.

Mr Frazis told the landlord he was returning to Sydney and would be moving out last December.

Mr Kirkpatrick asked for rent until April 2010, but took legal action when he found Mr Frazis planned to commute between Auckland and Sydney and remain in his Auckland-based position at Westpac.

He filed a claim with the tribunal saying the Westpac chief had abandoned the property and needed to pay the rent through to January next year, which totalled $134,057.

Mr Frazis, who has a salary of $5.59 million, denied the claim.

At $3400 a week, No 92 is a modern mansion that last month was judged the most costly rental dwelling in Auckland by realestate.co.nz.

It is a 1417sq m property on a clifftop above the Waitemata Harbour, with views across the city. The living area is 700sq m, and the property includes a swimming pool, spa and five-car garage.

It is valued at $7.1 million, but similar properties on Paritai Drive have fetched more than $10 million.

Mr Kirkpatrick said the $3400 rent had not deterred interest and "quite a few" parties were lining up to move in.