Paul Fayman

Reb Pinkus ben Shmuel Ze'ev (Hebrew: פנחס בן שמואל זב) (21 June 1921 – 7 April 1985), known to the public as Paul Fayman, was a Polish-born Australian property developer, financier and businessman. Based in Melbourne, he played a notable role in the city's post-war urban development and was active in the Jewish community. Although not widely known to the public, his work in real estate, retail, and industry had a lasting influence on Melbourne's commercial landscape. Fayman was directly involved with several prominent post-war corporations including Development Consolidated, Wright Bros, Hanover Holdings, Protean Holdings, and Austram Corporation.

Fayman was born in Pilica, a small village in east-central Poland, and was raised in the nearby industrial city of Sosnowiec.^[1] His father, Shmuel, was a livestock trader and his mother, Leja (Heb: Rachel), stayed at home and took care of Paul and his 10 siblings. The family spoke Yiddish at home, observed Jewish customs, were active in the local religious community, and lived in modest conditions typical of many Polish Jews at the time. Rabbi Yitzchok Dovid Groner described Fayman's upbringing as being "very Jewish".^[2] He received a traditional Jewish education and, upon graduating in 1937, Fayman supposedly began low-wage work as furrier apprentice.^[3]

By the late 1930s, antisemitism and political instability had begun to affect Jewish communities across Europe. Paul and his family were captured by the Nazis, they were split up, and transported to various different concentration camps across Europe. He would spend the next 4 years and 7 months of his life in concentration camps including Zakrzów, Reigersfeld, Blechhammer, Gross-Rosen and Buchenwald.^[4] Fayman reflected on his time during The Holocaust in a 1969 interview with John Sorell:

"Then the Nazis marched through. We were Jewish, and in 1942 they split us up and carted us off to various concentration camps ... I managed to survive the camps, mainly by good luck. I ended up being liberated from Buchenwald by the Americans. I spent the next year or so as a refugee tramping through Czechoslovakia, Hungary and Poland looking for my family, but I couldn't find anyone."^[5]

Fayman eventually got word that his younger sister, Cesia had settled in Germany. "I found her. That was one of the happiest days of my life" he recalled. They reconnected, and Paul moved into a nearby unit at a public housing estate in Neuhausen.^[6] Reflecting on that period, he stated: "For a long time I didn't know what to do. I had somehow lost the urge to work. Then I got a break. The Americans were selling some disposal goods from their Post Exchanges – chocolates, soap and other items. I became a wholesaler." he recalled.^[5] His unofficial business was conducted through Germany's thriving post-war black market, where Post Exchange goods deemed excess or obsolete by the military were sold or bartered informally.^[7] His customer base included local Germans seeking Western products, fellow Jewish displaced persons who had access to hard currency or American relatives, and small shopkeepers looking to stock rare or in-demand items.^[8] Fayman's refugee identification card from 1951 lists his occupation as "shoe maker", though this was almost certainly a coverup of his informal black market activities.^[9]

While living in Munich, Fayman claims to have financed and/or produced a film about the Holocaust, intending to expose the atrocities committed against his people. Although the mysterious, unnamed film was supposedly completed, it was never publicly shown because it got Fayman into "political hot water". The work, which was produced at some point between 1945—51 and likely shot on black and white 35mm safety film, is now considered lost and is unlikely to be released posthumously. The film appears to have only been mentioned in a 1969 interview with Australian media, with no clues given about its cast, plot, budget or name – only that it was, in his words "meant to show people what the Germans had done to the Jews".^[5] Fayman married his wife, Fela, in 1946 and they had two children. After the Berlin Blockade began in 1948, his sister Cesia emigrated to Australia, fearing another European war. Paul initially planned to immigrate to the United States, having completed his paperwork and packed his belongings. However, after speaking with his sister on telephone, he changed his decision. As he later recalled:^[10]

"When I rang Cesia in Melbourne she was so upset at the thought of the two remaining members of the family splitting this way that I decided, on the spot, to make Australia my new home too."^[10]

Paul, his wife and their two young children left the Port of Genoa in December 1951 and spent several weeks aboard the TSS Maunganui, eventually arriving at the Port of Melbourne in January 1952. He immigrated as Pinkus Fayman, but was known professionally in Australia as Paul Fayman. Arriving with what he called "a bit of money" and limited understanding of English, Faymab bought a home in Thornbury and began seeking opportunities to acquire a small business.^[11][6] He later commissioned and occupied a striking mid‑century modernist residence on Balmoral Court in St Kilda East during the height of his development career in the 1960s.^[12] Rumoured to have been designed by architect John Wallinga, its expansive entertaining areas became a regular venue for meetings with political and business associates. In March 1970, it was the scene of a nationally publicised burglary when serial offender John Harvey Rider—known as "The Cat"—stole approximately $15,000 in cash and jewellery (equivalent to $212,000 in 2024) on the eve of the Fayman family's departure for holiday.^[13][14]

Although Fayman's lifestyle was generally more restrained than that of peers, such as George Herscu, he was known to host high‑profile social functions and once imported a 1966 Pontiac GTO from the United States.^[15] Outside of his business and communal commitments, Fayman developed an interest in horse racing, co‑owning several thoroughbreds with fellow developer Eddie Kornhauser.^[16] He was also a member of the Victorian Racing Club, the Victoria Amateur Turf Club and the Mooney Valley Racing Club.^[17] He frequently travelled to the United States to conduct property and retail ventures, and was a periodic attendee at International Council of Shopping Centres conferences. Fayman granted only one in-depth biographical interview, conducted by journalist John Sorell at the Fayman family home in 1969, during his company's ultimately unsuccessful takeover bid for the retail group London Stores.^[10] Towards the end of his life, Fayman resided at a luxurious apartment in East Melbourne overlooking Fitzroy Gardens.^[17]

After only a few months in the country, Paul and his brother-in-law, Stan "Shayek" Fayman, became the proprietors of the Rennie Service Station at 184 Sydney Road, Coburg.^[18] Their business offered drive-in petrol filling facilities and a range of automotive services including greasing, oil changing and battery recharging, as well as the sale of batteries, tires and other accessories. This business had been sold by late 1954, and the original service station site was redeveloped in the 1980s.^[19]

Paul remained at the service station for a little over a year before joining forces with fellow Jewish migrant Max Siegal to acquire a small wholesale butchery on Oakover Road, Preston.^[11] Initially profitable, the business soon made the news—both locally and abroad—after it was found to be systematically overcharging customers. In a high-profile case, both Fayman and Siegal were fined £80 and pleaded guilty to eight counts of price gouging. In their letter of defence to the Preston Court, they claimed to have only recently entered the trade.^[20] This assertion stands in stark contrast to Fayman's own recollection in his sole biographical interview conducted by John Sorell in 1969, in which he described working "sixteen hours a day, six days a week, for four years" before selling out. Regardless, the Siegal-Fayman partnership was dissolved and their meat business was sold in 1954. ^[5]

Following the sale, Fayman supposedly purchased a nearby delicatessen and subsequently expanded it into a chain of 33 stores across the Greater Melbourne area. He later sold the delicatessen chain and shortly before the 1956 Summer Olympics, partnered with Stan Fayman and Mark Nowak to acquire a joint stake in a private company called Esplanade Freeholding, which operated the prominent Esplanade Hotel at St Kilda. At the time, the time was regarded as was one of the largest resort hotels in Victoria.^[21]

They had hoped for late-night trading approvals, but their expectations were unmet. Furthermore, the local council and licensing court rejected their proposed £1500 expansion of the hotel, which had been designed by notable architect J. Wallinga and would have seen the addition of a continental-style garden dining-room, increasing the venue's dining floor capacity from 200 to 650 persons.^[22] "Unfortunately, a large block booking was cancelled, which, coupled with other problems, gave us a hard struggle which lasted two years" Paul recalled.^[23]

He gave up the hotel, and, pooling funds with four partners, bought a controlling interest worth about $310,000 in Wright Bros; an old-established chain of delicatessens which had branches in the Melbourne CBD and in suburbs like Collingwood, Malvern and Prahran.^[24][25] After taking control of the company, he assumed the role of Chairman and helped strategically expand its scope of operations by leading a program to diversify, creating subsidiaries that invested in property development, retail, electronics and produce wholesaling.^[26] "But, with self-service upon us, I realised the shops were too small. So we sold them off at quite a nice profit" he said.^[23]

After divesting from Wright & Bros, Fayman ventured into real estate, focusing on residential developments in Melbourne's burgeoning outer suburbs. He noted the ease of property sales during that era, stating, "In those days it was so easy, you could sell off a map, you didn't even need to make roads."^[23] Many of Fayman's real estate developments in Melbourne employed a mixed-use strategy that integrated residential, commercial, and industrial components within a single master-planned estate. This approach not only maximised land use but also provided self-contained communities with immediate access to essential services and amenities.^[27]

In 1956, Fayman purchased a derelict poultry farm and orchard at Canterbury Road, Forest Hill. In 1958, construction began on a 200-lot residential subdivision called Forest Hill Heights. This was soon followed by the construction of the adjacent Forest Hills Shopping Centre, which opened in 1964 after many delays and quickly became one of the state's most successful suburban retail centres. Fayman's development at Forest Hill is considered to be a pioneering commercial development in the context of post-war Australia, and introduced the country's first Safeway supermarket. In 1967, Maurice Alter and George Herscu acquired a controlling interest in the centre's holding company, Forest Hill Heights Pty Ltd. Fayman retained a 25% interest but later sold this to Alter in 1983.^[28]

In 1967, Bill Gelfand—one of Paul Fayman's consultants and close business associates—proposed the potential subdivision of land situated east of Springvale Road in what was then known as East Burwood (now Vermont South).^[29] Recognising an opportunity to boost the catchment area for his nearby Forest Hill Shopping Centre, Fayman proceeded to acquire 80 acres at a cost of $640,000, or $8,000 per acre—nearly double the prevailing rate for rural land in the district.^[30] The initial development, named Burwood Rise, introduced over 270 residential lots between Livingstone and Stanley Roads, and around Dalroy Crescent and Consort Avenue. Rolled out in five stages between 1968 and 1971, it marked the first formal housing estate in the area that would come to be known as Vermont South.^[31]

In the years that followed, a series of additional estates emerged throughout the surrounding landscape. These included the 260-lot Sara Heights estate in and around Charlnet Drive and Torwood Drive (1971); the 80-lot Carrington Heights estate, incorporating Delacombe Drive and Winjallock Crescent (1975); and the 126-lot Burmont Heights estate, which created Hartland Drive and Highmont Drive later that same year.^{[32][33][34][35]} Other unnamed subdivisions were established along Burwood Highway, including a 130-lot development at the north-western corner of Terrara Road.^[36] In 1974, Fayman's firm Hanover Holdings completed the Vermont South Shopping Centre, positioned alongside a 105-lot housing estate centred on Hanover Road and the western end of Woodleigh Crescent—effectively laying the foundation for the modern suburb of Vermont South. Fayman also managed a company called Hanover Homes, which constructed hundreds of the homes in Vermont South and surrounding suburbs.^[37]

One of Fayman's most ambitious inner-city projects was the Centrepoint Mall on Bourke Street in Melbourne's central business district. Undertaken as a joint venture with Maurice Alter, the mall opened in 1979 and was positioned diagonally opposite the Myer Emporium. The development aimed to revitalise a prominent block of under-utilised buildings and brought together fashion retailers, specialty stores, and dining outlets under one roof.^[38] Fayman also owned the adjoining Leviathan Building. His estate sold these sites three years after his death in 1985, fetching over $74.2 million.^[39] The joint sale marked the largest single property deal in the Melbourne market since the 1987 stock market crash.^[40]

Fayman was associated with what journalist Ruth Ostrow called the "New Boy Network"—a cohort of largely migrant entrepreneurs, including many Holocaust survivors and Jewish businessmen, who helped transform corporate Australia in the post-war era. Often operating outside the traditional Anglo establishment, they forged new pathways to wealth in industries such as property development, retail, and finance.^[3]

Fayman always preferred joint ventures, particularly with other members of the flourishing local Jewish community. During his more than 30 years in Australia, he undertook ventures with–or had business dealings with–many prominent figures in post-war corporate Australia, most notably Maurice Alter, George Herscu, Stanley Korman, Eddie Kornhauser, Arnold Bloch, and Chaim Liberman.^{[Note 1]} Reflecting on their long professional association, solicitor Leon Velik described Fayman as "a brilliant financial mind," noting, "he was also a bit of a dealer... he would swiftly sell and move onto the next deal."^[41] Fayman once told John Sorrell:

"I believe that anyone who works with me should share in any prosperity. I work them hard, but I pay them well. I'm an easy going man, I tackle any job, I thoroughly enjoy being a good businessman".^[10]

Several of Fayman's business associates were later implicated in high-profile cases of fraud and corruption. Notably, George Herscu was convicted of bribing Norm Gallagher, the then–federal secretary of the Builders Labourers Federation (BLF), in exchange for favourable industrial outcomes.^[42] Another associate, Raymond Borg, fled overseas and changed his name after government inspectors accused him of falsifying financial records and generating "fictitious profits" to inflate company value.^[43] While Fayman himself largely avoided direct legal scrutiny, his business practices drew criticism, particularly after he was publicly named as a major beneficiary of an elaborate tax avoidance scheme. The operation—centred on the falsification of corporate returns using fabricated names and addresses—was estimated to have defrauded the Australian Government of more than $200 million, equivalent to approximately $1.2 billion in 2024.^[44]

Fayman was a well-known supporter and donor of the Victorian Labor Party, and maintained close relationships with several influential figures within the party. Cultivating close ties with key Labor politicians including Sam Cohen, Irvin Rockman, Ted Innes, and Alwynne Rowlands, he was also connected to close associates of Prime Ministers Gough Whitlam and Bob Hawke.^[45][46] One such associate, Leon Velik, played a key behind-the-scenes role in Whitlam's election as leader of the Australian Labor Party in February 1967.^[47] Fayman's political engagement reflected a broader trend among his business peers—many of whom, especially Eddie Kornhauser, George Herscu, and Maurice Alter, also maintained strong affiliations with the Labor Party.^[48][49] Fayman also had many connections within the greater Jewish community and maintained friendships with prominent figures including Rabbi Chaim Gutnick and Rabbi Yitzchok Dovid Groner.^[50]

Fayman was a committed supporter of Israel and an active donor to a wide range of Jewish causes. In Melbourne, he contributed to institutions including Beth Rivkah College, Yeshivah College, Elwood Talmud Torah Hebrew Congregation, Mount Scopus Memorial College, the United Jewish Education Board, and the Montefiore Homes for Jewish Aged. He also supported national and international initiatives, such as Magen David Adom, the United Israel Appeal, the WIZO State Council of Victoria, and the Samuel Herbert Cohen Memorial Fund.^[51][52][53]

In 1963, he contributed funding towards the construction of the 13-storey Jabotinsky Centre and National Museum in Tel Aviv.^[54] In his memory, the Paul Fayman Memorial Scholarship was established at Yeshivah–Beth Rivkah Colleges to "give the opportunity to children of families who would otherwise be unable to financially provide them with a Jewish education".^[51] Rabbi Groner said in 1987:

"Mr. Fayman appreciated the importance of a Jewish education, particularly in countries such as Australia and felt the necessity to imbue our youth with the true principles of our faith."^[2]

Since surviving the European concentration camps, Paul Fayman experienced recurring health issues that occasionally disrupted his work.^[55] In the lead-up to his death, he had recently undergone heart bypass surgery and, according to a close associate, maintained some old habits—such as enjoying a morning cognac—which suggested he was not in ideal health. Nevertheless, his sudden passing came as a profound shock to his colleagues and friends.^[41]

Fayman collapsed unexpectedly at his East Melbourne apartment on 7 April 1985, at the age of 63—on the Second Day of Passover (10 Nisan 5745)—just hours before he was scheduled to fly out for a meeting with Guinness executives to finalise a very important business deal. He is buried alongside his wife at the Chevra Kadisha Cemetery in Springvale.^[56] His business interests were passed on to his descendants, who continue to manage the Fayman International Group of Companies—which is primarily engaged in produce wholesaling and biochemical production.^[57]

In 1959, Fayman partnered with a group of Jewish businesspeople,^{[Note 2]} to form a private company that would consolidate their individual property and industrial interests under a single, mutually beneficial corporate entity.^[58] The consortium, known as Development Consolidated Pty Ltd, initially established its headquarters in the Lombard Building on Queen Street before relocating to larger offices at the Bank of Adelaide Building on Collins Street.^[5] One of the group's principal subsidiaries, a company called Retail Developments Pty Ltd, specialised in establishing large-format retail stores that were leased to national chains such as Woolworths, Coles, and Safeway. In addition, the group developed dozens of smaller retail sites, particularly in Melbourne's outer suburbs, including Fawkner and Box Hill, as well as regional centres such as Morwell and Niddrie.^[59][60][61] Another principal subsidiary, Forest Hill Heights Pty Ltd, was responsible for the development and management of the Forest Hill Shopping Centre.^[62]

In July 1960, Development Consolidated and Payne Properties submitted a proposal to the Minister for Public Works to develop an Australian version of Disneyland—named Australialand—on a 500-acre site in Laverton. The project was officially announced in The Age four months later, describing plans for "educational exhibits, together with the more customary forms of children's entertainment."^[63] Although the Melbourne and Metropolitan Board of Works granted provisional approval, the project was ultimately abandoned.^[64] According to contemporary reports, the decision followed a stern warning issued by Walt Disney's Australian representative, Walter Grainger, and was compounded by the 1961 credit squeeze.^[65]

Another major subsidiary of the group, Wright Bros Development Pty Ltd, was formed through the diversification of the Wright Bros delicatessen chain. It was responsible for a series of large-scale mixed-use developments across Melbourne's expanding suburbs during the early 1960s. Among these was a major project in Clayton, on a former agricultural site between Wellington and Dandenong Roads. There, the group developed the Hotel Monash^{[Note 3]} complex alongside a 90-lot housing subdivision, a small shopping strip, and a service station.^[66] Other significant residential estates undertaken by the group included the 220-lot Waverley Views Estate in Glen Waverley (1958–1963),^{[Note 4][67]} the 51-lot Warragul Park Estate in Warragul (1960),^{[Note 5][68]} and the gargantuan Eliza Downs Estate in Frankston (1960s–1970s).^[69]

Between 1959 and 1961, Development Consolidated was also involved in the construction of the Borrack Square Shopping Centre in Altona North. Comprising 30 shops, the centre was developed in tandem with the adjacent hotel (a first for the area) and integrated into a new 110-lot residential estate.^[70][71] The group also owned and operated the Shepparton Indoor Bowling Centre, which opened in July 1963 and became a local success.^[72] Development Consolidated was dissolved by 1968, although many of its companies were retained by Fayman through a separate holding structure.^[73]

In 1966, the Australian Minister for Civil Aviation announced that Paul Fayman, along with Leon Velik, Joseph Emanuel and Irvin Rockman, had partnered with the Petersville Corporation to establish a company called Aerojet Caterers, which was let an initial ten-year contract for all catering services within the soon-to-be opened Tullamarine Airport at Melbourne.^[74][75] Aerojet was granted over $750,000 (equivalent to roughly $12m in 2024) to equip and fit-out the cocktail, dining and buffet lounges of the terminal.^[76] Their iconic Top Air restaurant, which regularly hosted celebrities and prominent politicians, quickly became a top destination in its own right. Considered to be among Melbourne's leading restaurants at the time, with an elevated view above the World's first purpose-built Airport city. Aerojet was formally dissolved in 1995 following protracted litigation in the Supreme Court.^[77]

Fayman was also part of an affiliate company called Astrojet Exhibitions, which in 1967 obtained the lease of a large vacant space adjacent to the future airport site and released plans to build an aviation-themed entertainment complex.^[78] This eventuated as the Astrojet Space Centre, which opened in August 1970 with a 300-seat cinema, an observation deck, shops, cafes and aviation exhibits with a guided-tour service. A severe rainstorm in 1974 destroyed most of the Space Centre’s exhibits, though the cinema itself remained intact and continued normal operation until mid‑1978, when the airport doubled the independant cinema’s rental rates. The site was later repurposed by Ansett Airlines as a training and office complex for cabin‑crew and ground‑staff until Ansett’s collapse in September  2001. The facility finally emptied in 2002 and after decades of vacancy, was finally demolished on in 2023 to make way for the airport’s next phase of expansion.^[79]

In 1969, Paul Fayman joined forces with developers Maurice Alter and George Herscu to orchestrate the takeover of a publicly listed company, which they transformed into Hanover Holdings Limited—a diversified property and investment conglomerate. The acquisition, effectively a reverse listing, enabled the trio to bring their private commercial interests onto the Australian Securities Exchange without undergoing a traditional initial public offering. Hanover quickly rose to prominence as one of the most dynamic and controversial property groups of the era, capitalising on the post-war population boom and surging demand for residential and commercial development.^[73]

Under Fayman’s joint leadership, Hanover undertook large-scale property ventures across metropolitan Melbourne, regional Victoria, and interstate—spanning New South Wales, Queensland, Tasmania, and eventually the United States. The company’s portfolio included office towers, suburban housing estates, and regional shopping centres, many of which were developed through a web of subsidiaries and joint ventures.^[73]

Despite its early successes, Hanover’s financial performance began to decline in the mid-1970s. In 1976, Fayman, Alter, and Herscu initiated a buyback of Hanover’s shares and took the company private, a move that provoked backlash from minority shareholders and drew scrutiny over corporate governance standards. Following the privatisation, the partners divided Hanover’s assets among themselves, with each integrating parts of the former group into their respective business empires.^[80]

In late 1980, a company representing Paul Fayman launched a successful takeover of Mascot Industries, a New South Wales–based meat processing business. Following the acquisition, Fayman, his son William Fayman, and his nephew Marvin Fayman joined the company's six-man board. Mascot was soon effectively merged with Protean Holdings, a wholesale and processing group in which the Fayman family held a 20% stake. As part of this restructuring, Mascot divested its major subsidiaries—including abattoirs and businesses in tallow, meat meal, fertilisers, tennis strings, and smallgoods—to Protean for $7.89 million, receiving shares and debenture stock in return. Protean subsequently increased its stake in Mascot to approximately 80%, gaining full control.^[81][82]

In 1981, Protean became embroiled in public controversy after two Victorian Liberal MPs, Maurice Williams and Don Saltmarsh, alleged—under parliamentary privilege—that the company had ties to organised crime in Las Vegas, suggesting that its meat exports could serve as a front for drug smuggling. Although no evidence was produced, the claims sparked a media storm.^[83] Further scrutiny followed when one of Protean’s subsidiaries was reported to have exported cartons containing horse and kangaroo meat. The negative press, compounded by sector-wide challenges and rising interest rates, led to severe financial losses. Protean posted a $1.5 million deficit in 1981 and, the following year, a suspicious fire destroyed its recently renovated Brooklyn abattoir, causing over $13 million in damages. With operating losses surpassing $7 million, the company was placed into receivership in late 1982.^[84]

While Protean collapsed, Mascot Industries pursued diversification, particularly in the entertainment sector. In 1981, the Faymans acquired a majority stake in First Artists, a Hollywood production company originally founded by Barbra Streisand, Paul Newman, Sidney Poitier, and Steve McQueen. Though the venture produced several films, it eventually faltered due to creative disputes and weak scripts, and the Faymans sold their stake to LA investor Sam Schulman.^[85] In 1983, Mascot rebranded as Austram Corporation, reflecting its expansion into diverse sectors including film, plastics, chemicals, fashion, bowling alleys, and property development in Australia and the U.S. In 1984, Austram launched a $66 million partial takeover bid for whitegoods manufacturer Email Limited, acquiring a 7.1% stake and proposing to purchase a controlling interest, citing confidence in Email’s post-restructuring recovery and long-term growth potential.^[86]