Wellington, July 23 NZPA - Two accommodation businesses of embattled entrepreneur Dave Henderson have been placed in receivership at the request of the project financiers.

The Living Space hotels in Dunedin, which operates under Mr Henderson's company Castle St Ventures Ltd, and another in Invercargill, under Tay Ventures Ltd, were placed in the hands of Auckland receivers from accountancy firm Grant Thornton on Monday.

Auckland-based financier Equitable Group placed the two hotel companies in receivership, owing an undisclosed sum, for payment defaults, The Otago Daily Times quoted receiver Tim Downes saying.

He declined to give further details until the receivers' first report is delivered later next month.

Separate company Living Space, which is not part of the receivership proceedings, is managing three Living Space hotels, in Invercargill, Dunedin and Christchurch.

The latter does not come under the receivership order as financier Equitable Group has no stake in Christchurch, Living Space general manager Nick McCaw said.

He said despite the receivership, the Dunedin and Invercargill hotels were still open and "trading strongly".

This month Mr Henderson's Five Mile Holdings was put into receivership.

Five Mile aimed to build a high-density township for 10,000 people near Queenstown Airport. It would cost hundreds of millions to build and was expected to have a value of $2 billion when finished, although those values were given when the property market was buoyant.

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