Failed Auckland property developer owns Australian properties worth millions, and a Maserati

A bankrupt Auckland developer who left creditors millions of dollars out of pocket has a Maserati, Mercedes-Benz and property in some of Melbourne's most exclusive suburbs to his name.

Stephen Robert Kelly was made bankrupt in October – the second time since 2011.

Earlier this month his business, Chelsea View Estate, was put into liquidation and a North Shore housing development it was building in Birkenhead was put up for mortgagee sale.

Liquidator Paul Vlasic​ said creditors were owed millions of dollars, including one contractor who was owed $800,000.

The contractor, who wanted to remain anonymous, said he had written the $800,000 off.

The contractor had to close his business and start working as a carpenter for another firm, he said.

"The only incentive I have to get out of bed is to pay my mortgage."

He said he had been under immense financial strain over the past 18 months and was forced to sell his assets to pay his contractors.

"I just feel like I'm in jail."

ABIGAIL DOUGHERTY/STUFF

A buyer has not been found for the development at 8 Huka Rd in Birkenhead.

He said he was left having to pay Kelly's debts.

Kelly said he had no comment.

"Under advice of my solicitor I have nothing to talk to you about," Kelly said.

ABIGAIL DOUGHERTY/STUFF

8 Huka Road was being developed by Chelsea View Estate, Kelly's company that is now in liquidation.

Kelly was first made bankrupt in 2008 with personal debts exceeding $28 million.

Details have been sought from the Ministry for Business, Innovation and Employment about what his personal debts are for his latest bankruptcy.

When someone is made bankrupt their assets, including property, transfer to an official assignee so that they can be sold to help repay debts.

Despite being insolvent for a second time Kelly still owns two properties in Australia and one in Auckland.

Official records show a Maserati and Mercedes-Benz were registered to his name after he was made bankrupt last year.

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Stephen Kelly has a Maserati Quattroporte, similar to this but in white, registered to his name.

Australian records list Kelly as a director and shareholder of SM Kelly Pty Ltd, which in June last year bought a property for A$2.4m (NZ$2.62m) in the affluent Melbourne suburb of Toorak.

SM Kelly also owns an apartment in Melbourne's seaside suburb of St Kilda.

The St Kilda address is listed as the company address for SM Kelly.

SM Kelly bought the property in 2003 for A$879,000. Median property prices for units in Melbourne have increased nearly 50 per cent in that time.

Both properties have mortgages attached to them.

Kelly's New Zealand property is a Parnell apartment with a 2017 rateable value of $500,000.

Insolvency expert Keaton Pronk​, an associate at McDonald Vague, said the official assignee would be able to use the Cross-border Insolvency Act to liquidate a bankrupt's assets in another country.

But they would only do so if there was enough equity in an asset to make it worth their while.

For example a $1m property could have a mortgage attached that was worth more than the valuation of the property. In that situation it may not be worth the official assignee's time or resources to liquidate those assets, he said.

Vlasic said Chelsea View Estate's main creditor was Natwest Finance.

Natwest Finance director Anthony Radisich did not respond to requests for comment.

Tenders for the Birkenhead site closed on Monday.

Agent Phillip Davis said a buyer had not been confirmed because tenders were being considered.