'Hendo's hole' has new owner

An Auckland developer has bought Christchurch developer 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 a newly established company, Queenstown Gateways.

Mr 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.

Mr 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.

Mr 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 as "Hendo's hole" where the first stage of the development should have been.

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

Hanover has been trying to sell Five Mile since February but it is understood uncertainty about the zoning had delayed negotiations.

Neither Hanover nor the real estate agent marketing the development would confirm it had been sold yesterday.

- © Fairfax NZ News

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