Creditors of 22 companies connected to the flagging Dyldam Group are reportedly chasing $500 million in debt, as the company wades through voluntary administration proceedings.
McGrathNicol was appointed as receiver on January 5 for 22 entities and development sites connected to the Dyldam Group following ongoing financial woes for the western Sydney real estate developer.
Following their appointment, the Receivers have direct control over 8 real property development sites (see below), primarily in the western and north-western Sydney region and including residential properties and land held for or under development.
The Receivers’ appointment is limited to certain entities and sites and they do not have control over all entities and assets within the broader Dyldam Group.
McGrathNicol Partner and Receiver Jonathan Henry said: “The assets we are appointed over include a number of high-quality sites, some of which are near completion. Our intention is to finalise development of near-completed sites and provide purchasers with certainty over settlement
on existing pre-sale contracts.
“Based on our early assessment it appears the Group’s difficulties relate more to its capital structure rather than the quality of sites under development.
List of sites
It has since been reported that debt claims by creditors now total $510 million with the the largest creditor being Persephone Company, the trustee for The Persephone Trust, which has put in a claim of $353.7 million. McGrathNicol has also been appointed to The Persephone Company, a third-party lender to Dyldam.
Dyldam Development CEO Sam Fayad told the Australian Financial Review that a breakdown in the Sydney developer’s relationship with Beijing Capital Land (BCL) as well as funding delays and family-related litigation pushed the 22 companies into administration and forced receivers to repossess some of Dyldam’s biggest apartment projects.
The special-purpose vehicle for the mixed-use development in Baulkham – Hills – is one of the 22 companies in administration and receivership. That entity was the developer of 2 Seven Hills Road in Baulkham Hills with a 4500-square-metre shopping centre sitting below 233 apartments across four towers.
Mr Fayad, a director of Hills Shoppingtown, told the AFR that the company was party to family-related litigation before the NSW Supreme Court.
Australian Property Markets News reported that the shopping centre site which formed part of the Baulkham Hills project was sold for $15m on the day prior to the appointment of receivers. The purchaser of the asset was Tusco Services Pty Ltd.
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