Australia's Adult Novelty King Eyes World's Biggest Brothel

Bob Johnson

SYDNEY— Australia’s adult novelty king, Malcolm Day wants to create the world’s biggest brothel.

The controversial businessman is hoping to raise money for a three story, 42-room mega-sex-complex opposite Sydney University on the city’s Parramatta Road — Sydney’s major historical east-west artery.

“The new complex will create the largest short-stay bordello globally. On completion, earnings are projected to double to $40 million of revenue and $12 million of earnings before interest, taxes, depreciation and amortization (EBITDA),” according to a stockbroker presentation obtained by BusinessDay.

Seven suites with pool tables “and two sets of beds for parties and group bookings” will be built on the top floor of the complex.

A highlight in Day’s funding pitch to investors for the mega-pleasure palace reads, “Fully incensed and legal premises, with all regulatory approvals obtained — 10 year operating history.”

Day is shopping a $5 million convertible note through his listed company Delecta Ltd, formerly called Adultshop.

Part of the plan also includes the acquisition of Stiletto, another profitable brothel, and to run a one-for-eight share consolidation.

Stiletto reportedly earned $7 million in revenue last year and EBITDA of $3.6 million that translates to more than a 50 percent profit margin.