Notorious businessman and property developer Salim Mehajer is facing financial ruin, after one poor investment decision sent him into almost $100 million dollars’ worth of debt.
ASIC documents reveal Mehajer’s ‘Skypoint’ high-rise development in Lidcombe, western Sydney turned catastrophic for the former Auburn deputy mayor after he pushed back the sale of the apartments and defaulted on his loan repayments.
The five-story investment was supposed to earn Mehajer tens of millions of dollars, The Daily Telegraph reports
But ambition and overreach turned the project into a costly deadweight.
By delaying the unit sales – and, in turn, his $73.5 million loan repayments – and submitted another development application to add four more storeys.
Notorious businessman and property developer Salim Mehajer is facing financial ruin, after one poor investment decision sunk him into almost $100 million dollars’ worth of debt
Mehajer’s ‘Skypoint’ high-rise development (pictured) in western Sydney turned catastrophic after he pushed back the sale of the apartments and submitted an application to add four more storeys
Cumberland Council rejected the application, and when Mehajer contested that decision in the NSW Land and Environment Court he was knocked back once again.
Meanwhile, Mehajer’s companies defaulted on the loan from Hong Kong-based hedge fund SC Lowy, as interest and other penalty payments ratcheted the total debt up to $82 million by mid-2017.
From there, things rapidly escalated.
SC Lowy ordered Mehajer’s companies to immediately repay all of the money owed – as per a clause in their contract – with massive penalty interest payments: blowing the debt out to almost $100 million.
Cumberland Council rejected the application, while Mehajer’s companies defaulted on the $73.5 million loan (pictured: Mehajer with girlfriend Melissa Tysoe)
Other creditors claimed they were owed money; the development went into receivership; and it now looks increasingly likely that Mehajer won’t be making a cent from the project
Other creditors came out of the woodwork to claim they were owed money; the development and the companies Mehajer used to build it went into receivership; and it now looks increasingly likely that Mehajer won’t be making a cent from the project.
It’s a catastrophic outcome for an investment that was supposed to save Salim – who currently sits in jail following a string of legal controversies.
‘It was always (assumed that) as soon as John St is sold, he’ll be sweet,’ said an insider linked to Mehajer.
‘It was a stupid, stupid move (to default on the debt).’
It’s a catastrophic outcome for an investment that was supposed to save Salim – with a source close to Mehajer stating that ‘It was always (assumed that) as soon as John St is sold, he’ll be sweet.. It was a stupid, stupid move (to default on the debt)’
Mehajer still hopes to make back some of his losses, however: revealing plans to borrow as much as a further $82 million from overseas lenders
Mehajer still hopes to make back some of his losses, however: revealing plans to borrow as much as a further $82 million from overseas lenders during a bankruptcy appeal hearing in April.
During the hearing he made clear his intentions to continue the construction of five multi-million dollar projects – including one on John St, which he aims to put $75 million toward.
Justice Michael Lee refused to grant a temporary stay of Mehajer’s bankruptcy, while the jailed businessman waits for the Court to hear his application for annulment of the bankruptcy.
A final hearing on that matter is set for June 21 and 22.
He made clear his intentions to continue the construction of five multi-million dollar projects – including one on John St, which he aims to put $75 million toward
Justice Michael Lee refused to grant a temporary stay of Mehajer’s bankruptcy, while a final hearing for the annulment of the bankruptcy is set for June 21 and 22