KEY POINTS:
The country's biggest mortgagee property sale appears close to being finalised after Hanover Finance called in its loan on 92 apartments in central Auckland.
Two months ago, Hanover instructed Barfoot & Thompson to sell units in the 14-level 153-unit Winsun Heights, opposite Beca on Vincent St, and tenders closed on November 14.
Sixty-one units had already been sold but 92 remained in the hands of the block's developer Lily Zhong, whose company Winsun Developments owed Hanover $9 million.
So Hanover appointed Horwath Corporate receiver of income on the block where money was outstanding and called for the mortgagee sale.
Hanover Group, jointly owned by multi-millionaires Mark Hotchin and Eric Watson, is New Zealand's largest privately owned financial services group with assets of more than $1 billion.
Now, property investor Colin Elliott says he has offered to buy the properties and is in discussions with Auckland University about renting units to students. The university is looking for student accommodation to replace units at Quay Park's Railway Campus. Elliott was yet to sign the contract to buy the properties in Winsun Heights because he said negotiations had not yet been completed.
Lily Zhong said she was unhappy about the deal to sell to Elliott and that Barfoot had struck difficulties selling the units. Zhong said Elliott was closely associated with real estate business Ray White - the same chain which had initially attempted to sell the units.
Head for heights
* Winsun Heights is at 113 Vincent St.
* It has studio, one- and two-bedroom units.
* Some were being offered at $65,000.
