Westpac helps fund brothel
(2 August 2011 – Australia) Westpac is the senior financier for what could be the world’s biggest brothel on Sydney’s Parramatta Road.
Kingpin of Australia's adult toy industry Malcolm Day has begun raising money for the listing, 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 A$40 million of revenue and A$12 million of EBITDA,' according to a stockbroker presentation obtained by BusinessDay.
Westpac is the senior financier on the deal, chipping in A$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.
Providing a glimpse of the profitability of the sex industry, Hayson's existing brothel made A$7 million in revenue last year and earnings before interest, tax, depreciation and amortisation (EBITDA) of A$3.6 million. That's more than a 50 percent profit margin.
Revenues are tipped to more than double to A$17.8 million in 2013 when the project is complete, while EBITDA is forecast to increase to A$11 million.
'The new complex will create the largest short-stay bordello globally. On completion, earnings are projected to double to A$40 million of revenue and A$12 million of EBITDA,' according to a stockbroker presentation obtained by BusinessDay.
Westpac is the senior financier on the deal, chipping in A$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.
Providing a glimpse of the profitability of the sex industry, Hayson's existing brothel made A$7 million in revenue last year and earnings before interest, tax, depreciation and amortisation (EBITDA) of A$3.6 million. That's more than a 50 percent profit margin.
Revenues are tipped to more than double to A$17.8 million in 2013 when the project is complete, while EBITDA is forecast to increase to A$11 million.
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