Clouds over apartments, land as part of developer Dyldam folds

Apartments and land across Western Sydney and Brisbane have been placed into management after the collapse of parts of developer Dyldam.

An artist’s impression of the planned Dyldam development at The Horsley Drive in Fairfield in Sydney. Picture: Supplied

Secured creditors, including a number of offshore lenders, have appointed McGrathNicol to oversee eight residential development sites and partially completed apartment blocks in western Sydney and Brisbane, following the appointment of receivers to some parts of the Dyldam Group, a 50-year-old privately held development company that at its height boasted a development pipeline of $6bn.

In a statement issued on Friday, McGrathNicol said it was urgently assessing the assets and expected additional funding from several of the lenders to secure the best possible outcome for apartment purchasers.

“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,” said McGrathNicol partner and receiver Jonathan Henry.

“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,” Mr Henry said in the statement.

“The secured creditors who have appointed us intend to support the assets during the receivership process. This support will include the provision of additional funding to ensure the assets can be maintained while options for recapitalisation, development and/or disposal are explored.”

The sites involved include land as well as partially completed apartment blocks in Fairfield and Merrylands such as a 2.5ha site at 228 Pitt Street where Dyldam planned eight buildings encompassing 1200 apartments to be known as The Opera.

The developer also had projects in Sydney’s Westmead, St Marys, Schofields, Kellyville, and Baulkham Hills in Sydney. In Brisbane, Dyldam was developing in Wolloongabba at the corner of Stanley, Reid and Hubert Streets.

At the behest of the offshore lenders, four McGrathNicol partners were appointed receivers on January 5 following the decision by Dyldam directors to appoint voluntary administrators HLB Mann Judd on New Year’s Eve.

At its peak in 2018, Dyldam said it was about to deliver 9000 apartments in ­Sydney’s major growth corridors.