Five Mile venture sold to Aucklander

An Auckland developer has bought Christchurch businessman Dave Henderson's Five Mile development next to Queenstown Airport and is already appealing against new rules at the troubled site.

Developer Tony Gapes has signed an unconditional agreement to buy the 31 hectares of Five Mile land in the past week, using newly established company Queenstown Gateways.

Gapes is the director of Redwood Group, which was behind many Auckland property developments, including the $110 million inner-city Eden development.

He is also a friend of Hanover Finance co-founder Mark Hotchin, attending his controversial birthday party in Fiji last year.

As the first mortgage holder of Five Mile, Hanover is owed about $70m and will be the biggest beneficiary of the development's sale.

It is unknown how much was paid for Five Mile.

Gapes could not be reached for comment yesterday.

But he has wasted no time with his new purchase, appealing to the Environment Court against council zoning rules affecting the Five Mile land.

Another six parties, including neighbouring developers, Queenstown Airport and the receivers of Five Mile, have also appealed against the zoning.

Henderson had planned to build a billion-dollar village at Five Mile, which would have eventually housed up to 10,000 people.

But in July last year Hanover put the development into receivership, leaving a pit known now as "Hendo's hole" where the first stage of the development should have been.

Henderson has faced legal action over several of his Christchurch-based companies this year and avoided bankruptcy in the High Court last month.

At the time of receivership, Five Mile owed $93m to its creditors, including NZ Castle, Hanover Finance and other unsecured creditors.

Hanover is under a moratorium to repay $527m to its 17,000 investors, but is struggling to meet the condition of a five-year repayment plan.

On Wednesday, rural services and finance company Allied Farmers revealed a $400m bid to take over Hanover's property and loans.

It was reported yesterday that Queenstown Lakes District Council had reached an agreement with an unknown party to retain public use of the cricket ground on Five Mile land.

The use of the ground has been a point of contention between the council and Hanover, which said any buyer of Five Mile would not have to honour the agreement with the council.

- © Fairfax NZ News