Ralan founder ‘devastated’ for creditors

The Sydney founder of the failed Ralan Group, which collapsed owing creditors $550m five months ago, has broken his silence.

William O'Dwyer, founder of the Ralan Group

The Sydney founder of the failed Ralan Group, which collapsed owing creditors $550m five months ago, has broken his silence to discuss the financial devastation the failure has personally caused him, adding that his decision to expand his property development company to Queensland’s Gold Coast was a mistake.

Ralan was placed in administration last July and its creditors recently agreed to a plan allowing them to use their “lost” deposits to buy discounted apart­ments in a swath of new towers it apparently proposes with a mystery property developer.

William O’Dwyer told The Weekend Australian last night that he would have to sell his multi-level mansion in Sydney’s wealthy Bellevue Hill, saying it was heavily mortgaged and he would work tirelessly until Ralan’s 1600 creditors were repaid.

“I obviously feel very sad for the distress caused by Ralan going into administration,” Mr O’Dwyer said.

“It’s been a horrendous five months, I have been financially devastated and I will not put a figure on it. One would have to be a bizarre individual not to have been devastated by the stress this has caused.”

Mr O’Dwyer said he would launch a new 300-unit apartment complex, which is six minutes’ drive from the Sydney CBD, next Saturday.

On Friday he was still refusing to reveal the identity of his new business partner, a property developer known as Mr X.

Units in the near-city apartment block will be priced at the mid level.

The arrangement provides for a Ralan creditor who is owed $50,000 to buy an apartment valued at $500,000 for $450,000.

Under the Deed of Company Arrangement which was recently agreed to by Ralan’s creditors they would be offered first rights over the apartment tower.

Mr X has committed to a five-year business plan with Mr O’Dwyer to enable Ralan’s creditors to use their deposits to buy more of the prime apartments he plans to develop under the DOCA.

Mr O’Dwyer said Mr X had agreed to come onboard because he was being given 1600 clients virtually on a platter.

“I am not looking for any sympathy, I have said to my clients I don’t deserve it,” Mr O’Dwyer said.

Mr O’Dwyer said with Mr X’s help he would roll out many projects in Sydney and he was committed to getting the best result for all the creditors.

Ralan’s voluntary administrator, Grant Thornton’s Said Jahani, advised against the adoption of the DOCA. Mr Jahani said it was clear during his investigation of the Ralan group that it had been unable to pay its creditors for some time.