New Waiheke house for Hotchin
But critic says stung investors should never forget finance debacle, writes Hamish McNicol.
Hanover Finance co-founder Mark Hotchin has purchased a $1.5m holiday home on Waiheke Island, sparking fresh suggestions he is eyeing up a permanent return to New Zealand.
Hotchin has been based overseas for the past few years after the collapse of Hanover in 2008, owing $554 million to investors, but has been recently buying and selling property in his former stomping ground.
Hotchin purchased the twobedroom, 190-square metre home with ‘‘magnificent sea views’’ with former wife Lynette and Jillian Allison, according to property records.
Allison said Mark Hotchin did not live at the property, however, which was bought as a holiday home for Lynette.
Last year, Hotchin’s former holiday home went up in flames but the deliberate demolition was little consolation to investors who were themselves burned when his Hanover empire collapsed.
The five-bedroom Boatshed Bay home – sold in 2014 for $14.25 million – was deliberately torched by the Fire Service as a training exercise.
Accountant Bruce Hanover critic, said Sheppard, a Hotchin had been spotted on Waiheke Island and in Auckland’s eastern suburbs in recent months.
He said many investors who had been burnt by Hanover would have died by now.
Two exclusive Waiheke Island properties owned by the KA No.4 Trustee, a family trust associated with Hotchin, have also come on the market.
Waiheke Real Estate agent Warren Eade said the neighbouring pieces of land were initially listed a few months ago at $1.15 million and $950,000.
There had been some interest and he was confident in a sale, but the land’s features meant only a small pool of people could afford it.
At the same time, a Hawaiian mansion owned by a trust associated with Hotchin has reportedly been on the market for $16m.
That trust was involved with a company that had a shareholding in an American drinks company linked to former Hanover coowner Eric Watson, Long Island Iced Tea Corp, which last year raised about US$7m (NZ$9.75m).
Watson said this week he was not aware Hotchin had any plans to return to New Zealand.
However, he added it was not something he would expect to know.
Hotchin and other Hanover directors in 2015 paid $18 million to settle a civil claim brought by the Financial Markets Authority.