Westpac finances 'world's biggest brothel'

[DroversDog]

Westpac finances 'world's biggest brothel'
^^^ Link includes video of interior for those who maybe curious

August 1, 2011 - 2:53PM

Kingpin of Australia's adult toy industry Malcolm Day has begun raising money for the listing of what he claims will be the world's biggest brothel, a three-storey 42-room mega-sex-plex opposite Sydney University on the city's Parramatta Road.

"The new complex will create the largest short-stay bordello globally. On completion, earnings are projected to double to $40 million of revenue and $12 million of EBITDA," according to a stockbroker presentation obtained by BusinessDay.

Westpac is the senior financier on the deal, chipping in $12.1 million to redevelop 84 and 86 Parramatta Road, and slap it together with the existing brothel at number 82 - replete with a large underground car park.

Stiletto at 82 Parramatta Road - part of the investment plan to create a "mega-sex-plex" in Sydney. Photo: Domino Postiglione

Day is out marketing a $5 million convertible note via his listed company Delecta Ltd, which used to be called Adultshop. The porn king's plan is to run a one-for-eight share consolidation, acquire the brothel company Stiletto - which now operates profitably out of 82 Parramatta Road - from Sydney racing identity Eddie Hayson, and conduct a share buy-back.

Providing a glimpse of the profitability of the sex industry, Hayson's existing brothel made $7 million in revenue last year and earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.6 million. That's more than a 50 per cent profit margin.
Under the quite hairy-chested estimates in the broking presentation, however, margins get even fatter.

Revenues are tipped to more than double to $17.8 million in 2013 when the project is complete, while EBITDA is forecast to increase to $11 million.

The valuations, too, are a bit of a stretch with real-estate group Colliers estimating the value of the average room at $800,000. True, that does include spa baths and mood lighting. Moreover, the average valuation will have been lifted by the apparent shift to a "multi-bed" layout.

According to reports, the top floor of the new wing will include seven suites with pool tables "and two sets of beds for parties and group bookings".

The presentation also includes this line, citing the investment highlights: "Fully incensed and legal premises, with all regulatory approvals obtained - 10 year operating history."

That may be a typo, but then again ...
mwest[at]fairfaxmedia.com.au

[The Fresh Prince]

From the vid in the link: "250 clients a day with between 5-40 girls working there."

[harrybarracuda]

From the vid in the link: "250 clients a day with between 5-40 girls working there."

How enticing. You'd want to go at the end of a shift, wouldn't you?

[larvidchr]

What a load of bollocks, I have seen bordello compounds much much bigger than that in my time, and Soi (Corrected now) Yamato alone have many more rooms and hookers at the ready by far, granted it's not the same owners but the buildings are all connected, the rest is inconsequential details for pussy punters, maybe some one should buy the Aussie a World map to cure him from this "Americusbraggus" bug he is infected with, Sidney's largest brothel is more like it.

[DroversDog]

soy Yamamoto alone have many more rooms and hookers at the ready by far, granted it's not the same owners but the buildings are all connected

They are not legally a brothel though.

[larvidchr]

soy Yamamoto alone have many more rooms and hookers at the ready by far, granted it's not the same owners but the buildings are all connected

They are not legally a brothel though.

One of the afore mentioned details pussy punters don't worry about

[harrybarracuda]

soy Yamamoto alone have many more rooms and hookers at the ready by far, granted it's not the same owners but the buildings are all connected

They are not legally a brothel though.

One of the afore mentioned details pussy punters don't worry about

"Soy Yamamoto"?

[larvidchr]

soy Yamamoto alone have many more rooms and hookers at the ready by far, granted it's not the same owners but the buildings are all connected

They are not legally a brothel though.

One of the afore mentioned details pussy punters don't worry about

"Soy Yamamoto"?

Yeahh yeahh

Jap sushi restaurant "Yamato" (corrected) been there so many years the (soy) Soi is named after it.

Next to another brothel street "Soi post office"

Officially soi's 13/1 and 13/2 in down town Pattaya

[harrybarracuda]

I thought it was Soi Yamato?

[harrybarracuda]

Unless they've started naming Pattaya streets after Japanese naval commanders.

[larvidchr]

I thought it was Soi Yamato?

Unless they've started naming Pattaya streets after Japanese naval commanders.

You are right 'arry Yamato it is, the battleship and not the commander

[harrybarracuda]

I thought it was Soi Yamato?

Unless they've started naming Pattaya streets after Japanese naval commanders.

You are right 'arry Yamato it is, the battleship and not the commander

I was thinking the same thing as I wandered down Soi Goehring recently.

[Sailing into trouble]

From the vid in the link: "250 clients a day with between 5-40 girls working there."

Sort of tells its own story!
Whole new meaning of sloppy seconds!
Just imagine if you were right after Social

[BaitongBoy]

^ There are other kinds of "Social" problems as well...

[SiLeakHunt]

Posidon & several others on Rachadapisek Rd in BKK dwarf that place already..

Cheers

[DroversDog]

Posidon & several others on Rachadapisek Rd in BKK dwarf that place already..

Cheers

Aren't they just massage parlours

[pattaya2011]

Unless they've started naming Pattaya streets after Japanese naval commanders.

They should !

[Khun Custard]

Westpac finances 'world's biggest brothel'

Oh , I thought the story was about bankers funding another Labor Party conference on the carbon tax

[Stinky]

I once visited a nice brothel in Hanover that must have had a couple of hundred whores doors to knock on, at least t seemed that many in my drunken state.
And at a brothel in Bielefeld my mate was turned away by no less than thirty five whores, every last on if them said no the the spotty sod but mind you he did turn up in builders garb muddy boots and all, the last girl actually opened her door just to throw a jug of water over him.
My how we laughed

[SiLeakHunt]

Posidon & several others on Rachadapisek Rd in BKK dwarf that place already..

Cheers

Aren't they just massage parlours

I plead the fifth ammendment..

Cheers

[pickel]

I once visited a nice brothel in Hanover that must have had a couple of hundred whores doors to knock on, at least t seemed that many in my drunken state.

Since you were drunk, I can only presume it was late and near the end of their shift. Pervert!

[DroversDog]

Westpac pulls out of brothel project

August 15, 2011 - 3:17PM

Stiletto's at 82 Parramatta Road in Camperdown. Photo: Domino Postiglione

Westpac has walked away from financing the “world's biggest brothel”, the proposed 42-room megaplex on Parramatta Road opposite Sydney University.
The bank had come under pressure to abandon its role financing the brothel project when BusinessDay revealed an investor presentation two weeks ago showing Westpac as the senior financier on the deal. National Australia Bank was also a financier.

In a release to the Australian Stock Exchange today, Delecta, the company behind the development controlled by adult sex toy and porn kingpin Malcolm Day, said it was in the process of seeking alternative funding arrangements.

“The company has been notified that the offer from Westpac Banking Corporation to fund the acquisition of Dalway Enterprises … has been withdrawn.”
Dalway was the registered owner of the property operating the Stiletto brothel, which is earmarked for expansion under Delecta's proposed capital raising.
Earlier in the year, Mr Day had struck a deal with Stiletto's owner, Sydney racing identity Eddie Hayson, to build the complex, which included spas, lounges, restaurant, underground car park and a number of “multi-bed rooms”.

Westpac was to have been the senior financier, providing $12.1 million to redevelop 84 and 86 Parramatta Road in combination with the existing brothel controlled by Hayson companies on the adjacent site at 82 Parramatta Road.
It is back to the drawing board now for Mr Day. He had begun marketing Delecta's $5 million convertible note to sharemarket investors. His plan had been to revive Delecta, a wholesaler of adult toys whose shares trade at 1.6 cents, by expanding into a prostitution business with annual revenues of $20 million.

Westpac declined to specific why it had withdrawn its offer but it had come under substantial pressure for its involvement with the deal since it was made public on August 1.

There are also questions over the claims made in the investor materials about the prospective size of the assets.

Delecta claimed that the project would be the largest “short-stay bordello in the world”.

While it may be the case that Mr Day has relied on a definition of “short-stay” that differs materially from the meaning in other jurisdictions, BusinessDay subsequently learnt that there are far larger brothels overseas.

According to Barcelonareporter.com, for instance, the Paradise Club near the border with Spain “measures 2700 square metres and boasts 80 rooms with rates of €120 [$165] per hour”.

And this is only one of 11 so-called "macro-brothels" in this Catalan region of Gerona, near the Costa Brava. The Paradise club employs about 150 prostitutes, many more than had been envisioned by the Delecta proposal.

Mr Hayson's existing brothel at 82 Parramatta Road made $7 million in revenue last year and earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.6 million - a profit margin of more than 50 per cent.

Under the estimates in the broking presentation obtained by BusinessDay, however, revenue is forecast to rise to $17.8 million in 2013 when the project is complete while EBITDA is tipped to increase to $11 million.

Real estate group Colliers estimates the value of the average room at $800,000, an average which will have been lifted by the "multi-bed" layout.

According to reports, the top floor of the new wing would include seven suites with pool tables "and two sets of beds for parties and group bookings".

mwest[at]fairfaxmedia.com.au

[Neo]

a three-storey 42-room mega-sex-plex opposite Sydney University on the city's Parramatta Road.

That's handy for the girls

[FarangRed]

Wonder if they can put one across the road from Chula uni?

[socal]

From the vid in the link: "250 clients a day with between 5-40 girls working there."

So you only ever bang virgins ?