Morgans pay $6m for mansion

Gareth Morgan. Photo / APN

High-profile economist Gareth Morgan has bought a $6 million beachfront mansion previously owned by a bankrupt property developer.

The luxurious Mt Maunganui property, which boasts five self-contained units, a gym, sauna and heated swimming pool, was built by Paul Hollis who is being chased by out-of-pocket investors.

Hollis owned the property through company Tranquility Trustee Ltd until last August, when he removed himself as a director and filed for bankruptcy the next day.

The Economic Development Ministry's insolvency and trustee service said it was investigating Hollis.

"This file is under a forensic investigation," said Hamilton-based official assignee Les Currie.

Hollis was behind the biggest leaky building scandal in the Bay of Plenty, the luxury 40-apartment Cutters Cove resort.

Paul Grimshaw, of specialist leaky home law firm Grimshaw & Co, said investors were trying to recoup $10m after extensive damage was found at the complex.

Burnt investor Richard Kinloch, who still lives at Cutters Cove, said despite the recent sale he wasn't confident of getting money back.

"I don't think we've got a s***show of getting our money."

Hollis owned the Marine Parade property with his wife Sharon through a trust. They were removed as directors last August, the day before they both filed for bankruptcy.

Hollis no longer lives at the property and could not be contacted. His Hamilton-based lawyer Damian Botherway said: "I have no instructions to speak to the media."

Morgan completed the purchase for the four-storey home on Marine Parade from Central America where he is travelling overland on a motorbike tour.

In an email, he said: "I'm not into gossip column-type stuff so can't help you I'm afraid."

Tauranga Bayleys website said the Marine Parade mansion had been valued at $9m. The official valuation in July 2009 was $5.8m.

"However, a change in the owner's circumstances means you could own this property for less."

The ground level has parking room for eight cars and the master bedroom has a spa with ocean views. It has landscaped garden and two large decks.

"This exquisite home ... is tastefully considered and understated. The list of features and potential on offer is enviable," the marketing material said.

Bayleys said there was a lot of "sensitivity" around the sale.

Hollis has owned several bars in Hamilton and Tauranga, and was the proprietor of Auckland strip club Mermaids before it was placed in liquidation last year.

Morgan runs personal portfolio investment business Gareth Morgan Investments Limited, one of the largest private businesses of its type in New Zealand

Morgan and wife Jo loaned their son Sam $75,000 to expand Trade Me - and pocketed $47m when it was sold for $700m.

They used proceeds from the sale to establish a charity, The Morgan Foundation.