Top-end mansion rises in Northland

Alexander Abramov, a Russian steel magnate who Forbes estimates is worth $US7.5 billion, ($NZ9.1...
Alexander Abramov, a Russian steel magnate who Forbes estimates is worth $US7.5 billion, ($NZ9.1 billion) is building his New Zealand mansion at Helena Bay, Northland. Photo NZ Herald.

Russian steel magnate Alexander Abramov's Northland house could be costing $40 million to build, a top real estate expert has estimated.

Graham Wall, the Auckland agent who has sold many of the country's highest-priced houses, said it could be one of New Zealand's most expensive residences.

"I would only be guessing but if you say it's 4000sq m, it could cost as much as $40 million to build. That's everything," he said, including all internal fittings, appliances and electronics.

Mr Wall sold billionaire Peter Thiel a Parnell house and helped the billionaire Sultan of Brunei get $35 million for his Herne Bay properties in Auckland.

Aerial pictures reveal the footprint of the Abramov property at Helena Bay could be 1200sq m - six times the size of a traditional 200sq m Kiwi house.

But the house is multilevel, with grand staircases traversing the place, enjoying extensive eastern and northern views, so the main block could be more than 3000sq m once finished - 15 times larger than the average house.

The job is being run by Coatesville-based Chris Steel.

Many other portable structures dot the site, which is lined with pohutakawa and offers panoramic views and a secluded golden beach.

Secrecy shrouds the enormous project, which has hardly featured in the media, despite extensive advertising for workers.

The main U-shaped structure appeared to have an internal courtyard surrounded by extensive water features.

A separate residence is rising nearer the beach and footings have been dug to link the main building to the seaside structures. Roads snake around the site, which is hidden down a track, about 1km from the coastal back route between Whangarei and Russell.

However, the Northland development may not be New Zealand's most expensive residence.

The cost of redeveloping failed Hanover Finance boss Mark Hotchin's Auckland mansion has blown out to $43 million, making it one of the country's most expensive homes.

Built over three sections in cliff-top Paritai Drive, often known as Auckland's richest street, the home is at the centre of attempts by Mr Hotchin to make a living while protracted litigation relating to the Hanover Finance collapse plays out.

About 16,000 people with investments totalling in excess of $500 million have lost most of their money following the failure of Hanover and related companies, and the sale of assets to Allied Farmers.

Mr Hotchin put $12 million of his own money into the development, which is owned by a family trust known as KA4. Once completed, the mansion could free up funds for Hotchin, depending on its sale price.

However, his lawyer, Bruce Stewart QC, told the Court of Appeal Mr Hotchin was willing "not to access that $12 million'' except by agreement with the Financial Markets Authority (FMA) or by court order.

The court was also told that a $4.5 million mortgage had recently been approved to complete the development. That takes the seven bedroom home's total development cost to $43 million, from a previously disclosed $37 million.

The FMA and Serious Fraud Office (SFO) are both pursuing Mr Hotchin, although the FMA is pursuing only civil action. The SFO has yet to complete its investigation into the Hanover saga.

The cost of the Paritai Drive development was revealed as Mr Stewart argued the High Court had been wrong not to replace "draconian'' preservation orders freezing Mr Hotchin's few remaining assets, and that they should be allowed to be replaced with formal undertakings.

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