Workers back at Hotchin house

Neighbours have complained that the unfinished home is an eyesore. Photo / Dean Purcell

Mould has crept on to parts of Auckland's most controversial home but workers have finally returned to help complete the troubled mansion.

Hanover co-founder Mark Hotchin's vast $37 million home in Paritai Drive, Orakei, has continually had its construction set back by financial troubles and court hearings.

Work was halted in May last year when money was no longer available to pay tradesmen.

But four contractors have been working at the 4322sq m site this week, paving the driveway and cleaning up the back section of the property.

One said the lack of attention to the seven-bedroom house with a 12-car garage was evident - mould was creeping up some walls and grass had overgrown parts of the construction site.

Despite the financial constraints faced by the owner, contractors said they were confident they would be paid.

The house, now owned by a trust Mr Hotchin set up, is listed as a frozen asset by the Financial Markets Authority, formerly the Securities Commission. The commission took unprecedented action against Mr Hotchin in December to ensure compensation was available to meet any civil claims by investors. Mr Hotchin's spending is also limited, though last month he was allowed to pay his $5 million tax bill and claim some household assets.

The FMA is investigating if there were breaches of the Securities Act in the registered prospectuses of Hanover Finance, Hanover Capital and United Finance when Mr Hotchin was a director of all three companies.

Frustrated investors have described the palatial Paritai Drive home as a monument to financial excess since they lost $554 million when Hanover collapsed in 2008. Many were angry that costly work continued at the site when they were out of pocket.

Neighbours have also complained the unfinished home is an eyesore which devalued their properties.

The house was placed on the market in the middle of last year. But real estate agents said the High Court order meant it was no longer listed for sale.

Mr Hotchin has indicated he will not return to live in New Zealand after receiving death threats. He is living in a rented home in the Gold Coast.

He is understood to have invested $12.2 million in the Paritai Drive property, and a trust has invested a further $25 million. In July 2008, it had a capital value of $18 million, but this took into account the house was yet to be built.

Mr Hotchin's spokesman Carrick Graham said the house would be put on the market once it was finished.