Mark Hotchin's $30m jewel

Mark Hotchin is building this huge mansion in Paritai Drive, arguably Auckland's most exclusive street, with its commanding views over the Hauraki Gulf. Photo / Richard Robinson

While hurting Hanover investors struggle with the loss of millions of dollars, the company's owners continue to splurge on upmarket properties.

Hanover co-owner Mark Hotchin owns a number of Auckland properties, but investor outrage has focused partly on his $30 million Paritai Drive house under construction.

The financier and his business partner, Eric Watson, have been in the spotlight this week, with Hanover Finance owing about 13,000 investors more than $500 million.

QV lists Mr Hotchin as the owner of several other Auckland places. He has the stately and huge 16 Bridgewater Rd in Parnell, which has a residence, pool and tennis court.

This 1950s house on a section of more than a quarter of an acre has a rateable value of $5.3 million. Mr Hotchin is listed as the sole owner.

The 2832sq m property stands in an exclusive leafy area prized for its proximity to the city. Nearby is the formal Italian-style home of Prime Minister John Key.

QV shows Mr Hotchin bought the Parnell home in 1999 for $2.3 million.

Over on Waiheke Island, Mr Hotchin has a farm at Boatshed Bay next to Palm Beach, arguably the island's best bay.

He reportedly paid $13.85 million for his 4ha gully block with a secluded beach.

QV also lists Mr Hotchin as owner of 50 Ohinerau St in Remuera. That is worth $890,000. He owns it with Lynne Pamela Hotchin and Jillian Allison. They bought the place last year for $750,000, QV states.

The country estate where Eric Watson once lived is still a luxury getaway. The pristine Karaka property has been a society focus for some years and is rented for up to $6000 a night. It is still featured at westburyestate.co.nz.

Mr Watson has other extensive property interests as a director of Axis Property Group Holdings and Omara Property Group.

Readers' views via the Herald website have been mixed. Pencee of Royal Heights said: "Sell that $30 million home and pay back investors. They must have money to pay for that stupid ad on TV."

But Neill R from North Shore was not so sympathetic towards Hanover investors.

"Firstly they were stupid enough to lend money to Watson and Hotchin in the first place, then ... they voted to give them another five years' worth. Now that they're about to be shafted for the third time, you have to wonder whether they don't need to be taught a fundamental lesson - a fool and his money are soon parted."

Allied Farmers this week said it wanted to rescue the long-suffering investors by offering them shares for their debentures.

Herald columnist Brian Gaynor described Hanover Finance as "one of the worst examples of poor corporate governance and the country's inadequate securities markets' regulatory regime" and said the independent directors were "asleep at the wheel".

"Hanover Finance investors are in an awkward position ... At present they are in the hands of Hotchin and Watson, their management team and Hanover's independent directors," he said. "This is not a great place to be."