The multi-million dollar property will be destroyed by fire in a Fire Service training exercise on Saturday March 12.

A multi-million dollar mansion on Waiheke Island that was previously owned by former Hanover finance director Mark Hotchin will be burnt to the ground and demolished by firefighters.

The beachfront property sold for $14.25m in 2014. On Saturday it will be set alight as part of a Fire Service training exercise.

The house, at 46a Matapana Road in Boatshed Bay, was previously owned by Hotchin through a trust known as KA 3.

GEORGE GARDNER The Boatshed Bay property, bottom left, is to be destroyed by fire in a Fire Service training exercise on Saturday.

The five-bedroom home has a boat ramp, spa pool and tennis court and has a rateable value of $13m, of which the land is worth $12m.

READ MORE: Hotchin Waiheke home key to court case

It was the most expensive piece of real estate ever sold on Waiheke Island when it was bought in 2005 for $13.8 million.

The current owners, who are planning to build a new home on the site, asked if the Fire Service wanted to use the existing house as a live fire training exercise.

"To have it offered up is pretty phenomenal," station officer Peter Rowe said.

"We're incredibly fortunate that they've made it available to us."

He said it was mutually beneficial for firefighters to get training in a realistic house fire and for the owners to get their house demolished.

"They investigated removal, demolition, redevelopment, all sorts of things. This is the option they've taken.

"It's a huge experience for a lot of the firefighters and a huge amount of work has gone into it."

Rowe said fire crews have spent the past month arranging permits and consents to be able to burn down the house.

A fire truck is being taken over on the ferry from Auckland and 20 firefighters - mostly Waiheke volunteers - will be given the chance to test their skills when it is set on fire at 8am.

"There's a huge number of different aspects that we'll use for the training," Rowe said.

"We go into fire development, fire science, different types of fire fighting techniques, using a breathing apparatus, and also the opportunity to do a little bit on fire investigation as well."

Rowe said it was a unique opportunity to train at such an impressive location.

"It's quite rare, particularly to have a more modern house like this one is. Generally we get offered very old villas in the country areas that we actually have to spend time and effort preparing before we can get realistic fire conditions."

The plan has raised concerns from some Waiheke residents, with many writing on Facebook that they were concerned about the impact of smoke and not being informed of the fire.

Rowe said notices were sent out to nearby properties and fire crews were doorknocking the area.

He added: "Every step with regards to ensuring people's safety has been taken into account".

Auckland Council's Principal Rural Fire Officer Bryan Cartelle said the Fire Service had the required permissions to undertake a controlled burn.

He said the site and exercises would be under strict supervision by the Fire Service, and that neighbours had been notified.

The property has in the past featured in a dispute that ended up in court over right of access to the shared driveway on Matapana Rd.

Firefighters were expected to be there until 4.30pm on Saturday, Rowe said.