Lyon fires cited in 'kidnap' case

A sensational claim by the victim of an alleged kidnapping involving wealthy business partners may prompt police to revisit inquiries into suspicious fires at developer Mark Lyon's properties.

Kim Spencer claims in court documents that during an armed kidnapping and beating, Richard Kroon threatened to burn down his house and made repeated reference to "what had happened to Mark Lyon".

Three suspicious fires occurred at properties of Mr Lyon's in 2002.

Kroon and another man have been charged with kidnapping, using a firearm, injuring with intent, and demanding with menaces.

Kroon is accused of forcing Mr Spencer to sign two documents capable of giving Kroon a $3 million cut of a property deal Mr Spencer had done.

Although Kroon has yet to enter a plea, his lawyer Paul Davison, QC, said his client denied the charges.

Mark Lyon, who made a fortune developing Auckland CBD properties before falling into drug addiction, has done joint-venture projects with Kroon, including the Chancery retail and office development at the foot of the Metropolis tower. It was completed in November 2000.

Fires that broke out during a two-month period in 2002 destroyed Mr Lyon's multimillion-dollar Epsom mansion next door to the Governor-General's residence, and damaged properties in Vulcan Lane and Arrowtown.

Police investigated the three fires but were unable to establish the cause of any.

Detective Sergeant Grahme Bartlett, who investigated a fire in a barn converted to accommodation on a 21ha property near Arrowtown, said Mr Lyon was in Auckland when the fire occurred.

"There was nothing conclusive, one way or the other".

Detective Paul Loft said there was insufficient evidence to bring charges regarding the Vulcan Lane fire, and the Epsom mansion fire inquiry was also inconclusive.

Police spokeswoman Noreen Hegarty said it was premature to say whether police would revisit the fire inquiries.

"If anything came out, particularly of a successful criminal prosecution that relates to or reveals information about inquiries that have previously been carried out by the police, then certainly that becomes of interest to us.

The Weekend Herald understands Mr Spencer has alleged in statements to detectives working on the kidnapping case that Kroon had made references to the fires at Mr Lyon's properties to intimidate him.

Mr Spencer is claiming $500,000 damages from Kroon arising from his allegation that he was stood over to sign documents.

Kroon has filed a counter-suit seeking $3 million from Mr Spencer, which is a half-share of profit derived from a property deal that he claims Mr Spencer did behind his back in breach of their joint-venture agreement.

They have agreed to delay the civil case until after the criminal trial, which may not be until late next year.

What's alleged

* He was repeatedly punched and kicked, suffering two cracked ribs, extensive bruising, a black eye and fat lip by a man who posed as a potential buyer of Mr Spencer's house, and three men in balaclavas.

* He was threatened with a gun and knife, made to strip to his shoes and T-shirt and to kneel on a plastic sheet.

* His business associate Richard Kroon entered the Pakiri shed where he was held, continued to threaten him and directed the assailants to continue the beatings.

* Mr Kroon threatened the safety of Mr Spencer and his family, and threatened to burn down their house.

* Mr Kroon made repeated reference to "what had happened to Mark Lyon".