Administrators called in to another Mehajer company

Sydney property developer Salim Mehajer is in the wars again, with another one of his companies placed in administration

Former Auburn deputy mayor Salim Mehajer outside court last month. Picture: AAP

Another company owned by embattled Sydney property developer Salim Mehajer has been placed in administration after failing to make interest payments to lenders.

Downtown Project Developments, wholly-owned by Mr Mehajer, the former deputy mayor of western Sydney Auburn Council, has been placed in the hands of administrators Veritas Advisory owing millions in unpaid debts.

Creditors include ANZ, property development lender Reynolds Private Wealth and a small private company registered in July called Delphin Pty Ltd, which launched the legal action to wind up Mr Mehajer’s latest failed company.

Documents filed with the Australian Securities & Investments Commission show Delphin lent money to Mr Mehajer’s Downtown Project Developments and holds a mortgage over three properties owned by the failing company.

Mr Mehajer was in 2015 banned by ASIC from being a company director for three years and since then family members and acquaintances have taken over as directors of his companies.

In June, receivers HLB Mann Judd were appointed to Mr Mehajer’s SET Services and Sydney Project Group, with creditors seeking to recover $97 million in unpaid debts.

Mr Mehajer’s flamboyant August 2015 wedding, which involved an unapproved road closure, along with four helicopters and a jet flyover, drew national attention.

It later led to questions being asked about the relationships between property developers and Auburn councillors and led to an inquiry being called by the NSW government.

Mr Mehajer, whose father was also a property developer in Auburn, made a large amount of money buying land in Auburn and building apartment towers, after gaining “rezoning” approvals from local council.

The scandal surrounding Auburn Council led to calls for property developers being banned from holding positions on local councils. Developers are already banned from making political donations in the state, but the NSW Liberal government rejected the push.

Under the terms of the receivership of Downtown Property Developments, receiver Veritas Advisory will be paid at least $25,000 from the proceeds of selling up the company’s properties.

“Once (Delphin) receives full payment of the debts and costs, the receiver may recover the remainder of its fees from the surplus moneys,” the documents registered with ASIC state.

Documents show Delphin was created on July 3 by Swiss-born Martin Junz and Chinese-born Yvette Jiang, who both live in Maroubra in Sydney’s east.

Mr Mehajer is due to face court early next year over a string of court cases ranging from the alleged assault of a taxi driver and Seven Network journalist Laura Banks to charges of electoral fraud.