Stage one of Five Mile township sold

The first stage of the the Five Mile township development in Queenstown fetched $11 million in cash, but some money has been left in as part of the deal.

The amount paid for the 7.7 hectare site, locally called "Hendo's hole", was revealed at the investor briefing for Hanover debenture holders in Christchurch.

Hanover Finance's independent chairman David Henry said some money was left in the sale of stage one of the Five Mile township development "rather than give it away".

Five Mile was an ambitious township development by Christchurch developer Dave Henderson. It was placed in receivership in July last year.

At July 9 this year, the receiver's report said Five Mile Holdings owed Hanover Finance $91.48m, and unsecured creditors $12.68m. That was before the sale of stage one last month to Auckland developer Anthony Gapes.

Hanover Finance co-owner Mark Hotchin said the buyer was partnered by Progressive Enterprises, a supermarket operator. Because stage one was sold, Stage 2 of the Five Mile Development – about 23ha – had been taken out of receivership and transferred to a new Hanover Finance subsidiary, Five Mile FM2, Mr Hotchin said.

That meant it was owned by Hanover investors and would be transferred with other Hanover assets to Allied if the proposed deal was backed by investors in Hanover and Allied.

- © Fairfax NZ News