In the middle of Parramatta sits a 24-storey residential tower. No one lives there

Elegant, timeless and convenient – that was how Observatory Place, a 24-storey residential building in Parramatta featuring 173 apartments, was described by its developer. But despite construction finishing in 2022, the tower is abandoned.

Identifiable by its orange cladding, passersby can’t miss the 5-7 Parkes Street building that towers over Jubilee Park, on the southern side of the railway station. They also can’t miss the fence that stretches around it, preventing anyone from entering the vacant complex that is now sporting chipped paint and graffiti on the walls.

In 2022, serious defects were identified onsite during an inspection, with NSW Fair Trading issuing a Building Work Rectification Order (BWRO) and Prohibition Order for the tower in 2023, which prevented anyone from moving in until the defects were fixed.

But the orders were just the beginning of the troubles: in 2024, the developer of the site, Parkmeng Pty Ltd, was placed into external administration. The men behind Parkmeng, which was established in 2014, are familiar names: Fayad Fayad, Remon Fayad, and their father Sam Fayad were all the former bosses of Dyldam, which went into administration in 2020.

As reported by this masthead, Sam Fayad has what is believed to be the largest bankruptcy in Australian history, with personal debts of more than $2.8 billion, including $46.5 million owing to the Australian Taxation Office. His sons also have combined tax debts worth more than $30 million, and both declared themselves bankrupt in July.

In 2021, a YouTube video shared by Savills Australia & New Zealand featured the brothers talking about Observatory Place, with Remon saying “it’s something we’re proud of and we would like that to be a part of our legacy”.

On its website, the Fayads’ property management company Ellerson Property, which was established by Remon and Fayad, still says the building is under construction.

According to corporate filings, Sam was a director of Parkmeng from 2015 to 2023. When contacted for comment, he said he had not been involved in the company since “before 2023”, and referred this masthead to the liquidator Ernst and Young.

“I’m not sure why [the liquidator] hasn’t fixed the property if there are defects there,” he said.

But Ernst and Young referred this masthead to the receiver of the property, Newpoint Advisory. It did not respond to a request for comment.

An uncertain future

The 2023 rectification order found defective plumbing works in the basement, which had resulted in “unhealthy and dangerous conditions”. A submission from the developer at the time said the rectification was a “work in progress” and had not yet been completed. Two years later, that still stands true.

A Building Commission NSW spokesperson said it had been in regular contact with Newpoint Advisory, which it said was working towards rectification and completion of the building.

“When rectification works are finished an inspection will be conducted to ensure defects outlined in the BWRO have been rectified,” the spokesperson said. “If Building Commission NSW is satisfied the defects identified in the relevant orders have been rectified, the Prohibition Order and BWRO on the site will be lifted.

“If any further defects are identified Building Commission NSW will consider keeping a Prohibition Order in place or further regulatory action.”

Before the collapse of the property empire, Dyldam had big dreams for Parramatta: just down from the Parkes Street tower sits 83 and 63 Church Street and 44 Early Street, where a $876 million five-tower project was approved to be built.

The auto alley site was acquired by Chinese-backed developer JQZ in 2023, which has since received support from the City of Parramatta to increase the building height up to 40 storeys, which will be determined by the Sydney Central City Planning Panel. The site is under construction.

At 142 Macquarie Street, the site which had once been the Cumberland Newspapers headquarters, Dyldam planned to build three towers up to 60 storeys. Those plans didn’t eventuate and, according to Domain, the land was sold in 2024 for $88 million.

With Anthony Segaert

The Sydney Morning Herald has opened a bureau in Parramatta. Email parramatta@smh.com.au with news tips.