Five Mile sold; buyer a mystery

Queenstown's beleaguered Five Mile property project has been sold, but the identify of the buyer remains a mystery.

Allied Farmers managing director Rob Alloway refused to comment yesterday.

"I am not going to comment on who the buyer was or the structure of who has bought it. It has been sold unconditionally," he said.

Allied Farmers, which owns the Five Mile site, confirmed the unconditional sale of the 23.3ha property to an anonymous party on July 15, but that deal fell through because another party with right of refusal came forward.

David Mahoney, of Tawera Group, told the Otago Daily Times, he was "nearly" the buyer, but the deal collapsed this week.

"We went unconditional, but another party is involved. We are not the buyer, unfortunately. We are the party that went unconditional, but there was another party that had first right of refusal and had 10 days to decide if they wanted it.

"It sucks for us," he said.

The Otago Daily Times understands the owner of stage one - Queenstown Gateway Ltd - had right of refusal over stage two.

The first stage of Five Mile was sold last November by Hanover Finance to Queenstown Gateway Ltd.

The 7ha stage one includes Hendo's Hole, a large area of earthworks next to State Highway 6.

Progressive Enterprises, which owns Woolworths, Countdown, Fresh Choice, Foodtown and Dick Smith brands, provided a portion of the funding for the $21 million purchase price.

Queenstown Gateway Ltd director Tony Gapes did not respond to calls yesterday.

Allied Farmers took over the Five Mile land as part of the purchase of Hanover Finance late last year.

At the time, Mr Alloway did not disclose how much was paid, but said it was "nearing the upper end of the valuation scale".

The sum was also a "reasonable amount" more than the value of the property as recorded in the half-year accounts of $23.2 million.