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“Frankly, you should not be allowed to build a Lego house given the manner in which you have conducted yourselves,” an angry purchaser wrote recently to property developers Fayad Fayad and his brother Remon.
But like all the other emails solicitor Claudine Watson-Kyme has sent to the pair, she has never received a reply.
The Laneways, a 118-unit block in Rosebery, has been beset by rectification orders. Credit: Edwina Pickles
Remon and Fayad are the sons of Sam Fayad, the once high-flying boss of development giant Dyldam, which had 20 related companies collapse on New Year’s Eve 2020, leaving debts of an estimated half a billion dollars.
A number of subcontractors owed money have been complaining for years about the lack of action by corporate regulators. In 2016, a Herald investigation revealed that more than a dozen Dyldam-related companies run by Sam Fayad and his brother-in-law Joe Khattar had gone bust, owing the Australian Tax Office millions.
There was a pattern to their bad luck. Shortly after the completion of a development – having paid Dyldam handsomely for construction services and with several apartments transferred to family and friends – the company would collapse, owing the ATO and subcontractors millions.
A new special-purpose vehicle would then be established for the next venture.
Sam Fayad, 63, is now in court facing bankruptcy proceedings initiated by a South Korean lender and there are caveats on his properties protecting the interests of other lenders.
Sam Fayad with his wife Maria, who is the sister of Dyldam founder Joe Khattar. Credit: Facebook
Meanwhile, his sons Remon Fayad, who was Dyldam’s chief operating officer, and Fayad Fayad, its CEO, have set up a new development company, Ellerson Property.
In a glowing interview with CEO Magazine, in which no mention was made of the unfortunate Dyldam, Remon was quoted saying of their new company: “We’re not like one of the major developers who builds apartments, sells them and then moves away with a ‘See you later!’ We want that family feel, staying on to help out in any way we can.”
Brothers Remon Fayad and Fayad Fayad.Credit: Twitter
This is not the experience of frustrated purchasers including Watson-Kyme, whose life has been in limbo for the past two years. In March 2021, she paid a deposit “off the plan” for a $1.4 million apartment in the almost completed The Laneways project in Mentmore Avenue, Rosebery. Purchasers were assured the 118-unit block would be completed by mid-2021.
However, at the end of last month, The Laneways was hit with yet another rectification order. Fair Trading records show that Ellerson has prohibition orders on both the Rosebery property and a 24-storey development in Parkes Street, Parramatta. The orders mean occupation certificates cannot be issued until the rectification work is done.
“We are in a hideous, stressful situation where we can’t move forward, can’t get out without spending an awful lot of money having a legal stoush with these characters,” Watson-Kyme said.
In her most recent email to Ellerson, she wrote: “No doubt you will just close up shop eventually and open under a different name, ready to dupe people like me again.”
Corporate searches show that the two registered development companies for both the Ellerson developments have Sam Fayad as the sole director, and the company address is the Dyldam office. Remon resigned as a director of the Rosebery company last month, with Fayad having resigned as a director earlier.
Meanwhile, Sam Fayad’s wife Maria, and her brother Joe Khattar, Dyldam’s co-founder, recently lost a major court battle over their late brother’s estate. When he died in April 2010, George Khattar, 44, was worth more than $100 million through his 25 per cent share of the Dyldam group.
Carol Khattar (centre) with her daughters Georgia (left) and Alana. She has successfully sued her late husband’s brother Joe Khattar and his sister Maria Fayad.
For more than a decade, George’s widow Carol and daughters Georgia and Alana have been fighting the executors of the estate, George’s sister Maria and brother Joe. The siblings previously settled the dispute by promising Carol 20 apartments in the Hills Shoppingtown development. However, it too went into administration and Carol received nothing.
Last month, the Court of Appeal ruled against Joe Khattar and his sister Maria. “It’s been a nightmare trying to enforce the debt,” which is now about $20 million, said Carol’s lawyer Jonathan O’Loughlin, from legal firm O’Loughlin Westhoff. Freezing orders have been placed on the siblings’ assets.
“I am family, these girls are their blood. How could they abandon us?” Carol Khattar told the Herald.
Comment was sought from the Fayads.
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