Hanover Holdings

Hanover Holdings Limited

Formerly| Allans Finance Limited
Industry|

* Realestate
* Finance
* Textiles
* Mining
* Produce wholesaling

Predecessor| Masaga Investments
Founded| 14 July 1958
Defunct| 11 September 1979
Fate| Privatised and dissolved
Successor|

* Austram Corporation
* Hersfield Developments
* Pacific Shopping Centres

Headquarters| 158 City Road, Southbank
6 Riddell Parade, Elsternwick
276 Collins Street, Melbourne

Key people

| Paul Fayman (CEO)
Maurice Alter (M. Director)
George Herscu (M. Director)
Frank Tate (Former CEO)
Total assets| ~ $300 million (1976)
Divisions| Hanover Homes
Subsidiaries| Hanover Properties P/L
Hanover Developments P/L
Hanover Management P/L

Hanover Holdings Limited was an Australian real estate development and investment group based in Melbourne. Founded in 1969 through a reverse takeover of the ASX-listed Allans Finance, Hanover quickly became a prominent name in post-World War II corporate Australia, capitalising on the country's growing population and the subsequent demand for housing, retail, and office space.

Though formally independent, Hanover represented just one arm of a broader, informal consortium of predominantly Jewish businessmen with extensive property interests. Jointly controlled by Paul Fayman, George Herscu and Maurice Alter, its web of affiliated companies were behind the construction of thousands of homes, numerous prominent retail precincts and shopping centres, and several large-scale office developments across central Melbourne.

Hanover collaborated with a range of local architects, most notably maintaining a long-standing partnership with designers Bill Millar & Ray Barnard-Brown (Millar, Barnard-Brown & Associates). Hanover's projects were predominantly executed in the Post-War Modernist style, characterised by clean lines, functional forms, and minimal ornamentation. Among its most prominent developments was a 16-storey office tower at 520 Collins Street, which in recent years has been considered for heritage protection.

Boosting profits from $67,122 in the 1968–69 financial year to a reported peak of over $1.8 million in 1972–73, Hanover's rapid growth slowed after the 1974 economic downturn. That year, profits plummeted to $631,000. By late 1975, Hanover was deemed no longer profitable by its directors, who moved to privatise the company and divide its assets among themselves — much to the outrage of minority shareholders.

## Developments in Australia

[edit]

Hanover was among the more dynamic property developers in Victoria during the postwar retail and commercial boom, with an expansive portfolio spanning suburban shopping centres, arcades, department stores, office towers, and landmark CBD sites.[1]

### Retail and office developments

[edit]

Watercolour of Hanover House, 1972

The company's suburban retail ventures were broad and strategically located. Notable examples include the Vermont South Shopping Centre (1974), Dandenong Hub Arcade (1974), and the Hanover Arcade in central Dandenong (1970).[2][3] Smaller centres included Diamond Village Shopping Centre (Watsonia),[4] Town Hall Shopping Centre (Ringwood), and a shopping arcade at Kingsway–which also doubled as an entrance to Glen Waverley Station.[5][6] In addition to these larger developments, Hanover also established numerous arcades and strip malls across Melbourne's suburbs. These included Bundoora Arcade (1969), Niddrie & Northcote Arcades (1972), North Croydon Shopping Plaza (1977) and the Balmoral Arcade in Frankston (opened 1973, later absorbed into Bayside Shopping Centre).[7][8][9][10][1][11]

Hanover tower at 520 Collins Street, 1973

In Warrnambool, Hanover developed the Hanover Shopping Centre at 146-148 Koroit Street, which opened in 1971.[12] A number of these smaller developments were later sold off in 1975 as part of a broader diversification and rationalisation program.[11] The firm's footprint extended into regional and interstate markets, including a shopping centre in Ulverstone, Tasmania, anchored by a Coles supermarket, and commercial retail holdings in Clayton and Ferntree Gully.[13] Several department stores and strip properties, such as the former Lindsay & McKenzie store in Footscray and the department store at 134 Smith Street, Collingwood, were also part of Hanover's retail portfolio.[11]

Hanover Arcade at Dandenong, 1970

Hanover's retail ambitions also reached the city centre. The company was deeply involved in the land acquisition and early planning stages of the Centrepoint Mall project on Bourke Street, which opened in 1979 under Centrepoint Freeholds (a successor to Hanover Freeholds).[14] In the CBD and Southbank, Hanover acquired and developed significant commercial properties including 264 Little Collins Street, 288 and 288–292 Queen Street, 127–137 Riverside Avenue, 518–520 Collins Street, and the Leviathan Building at 271–281 Bourke Street, which was held by Paul Fayman's trust until 1988.[15][16][17] One of Hanover's landmark city projects was Hanover House at 158 City Road, Southbank—Southbank's tallest building until 1990.[18][9]

### Residential estates

[edit]

The Hanover group of companies collectively played a significant role in Melbourne's postwar suburban expansion through large-scale residential development.[19] One of Hanover's most concentrated housing efforts occurred in Vermont South, where the company was instrumental in shaping much of the suburb's early residential layout.[20][21][22] Masaga's first development in the freshly rezoned suburb was a 260-lot development called Burwood Rise (1968–71).

This was followed by a series of coordinated subdivisions in the early–mid 1970s carried out under Hanover branding, including a 105-lot estate immediately east of the future Vermont South Shopping Centre (including Hanover Road), a 130-lot precinct around Hempstead and Warrington Avenues (1973), the Carrington Heights Estate of 93 lots near Delacombe Drive and Winjallock Crescent (1973), 68 lots around Chablis and Galea Crescents (1974), and the 38-lot Melissa Grove Estate (1976). In total, Hanover and its affiliate companies created over 900 blocks in Vermont South and built at least 100 homes across the suburb. Hanover Road, Hanover Reserve and a small underground watercourse are named after the group.[23]

Watercolour of proposed centre, 1972

Beyond Vermont South, Hanover also undertook major subdivisions in nearby Mulgrave, with over 270 lots at their Valley View estate at Haverbrack Drive off Police Road. A similair development comprising 105 lots was also established nearby in Scoresby.[24][25] In Croydon North, the Timbertop Estate on Exeter Road released 68 home sites between 1971 and 1972, alongside part of what is now designated as the Maroondah Village shopping precinct. Hanover later extended further into Melbourne's outer east with the Lilydale Station Estate, which began lot sales in January 1977.[26]

In Aspendale, the company developed a 40-lot housing estate around Kubis Avenue, with 50 lots sold during the 1972–73 period.[27] A more premium offering was the Kings Golf Estate in Dingley, where 70 lots were marketed between 1972 and 1973 adjacent to the Kingswood Golf Course, appealing to higher-end buyers.[19]

Hanover also ventured into outer-northern Melbourne with the Mickleham Downs Estate, with farmlets located on Mickleham Road approximately 9.5 km north of Greenvale Road.[28] Auctioned in 1973, this semi-rural subdivision marked Hanover's participation in emerging peri-urban markets. Further afield, the company completed a notable development in Sale, Gippsland, at 126 Raymond Street—a mixed-use residential and commercial complex comprising 39 fully furnished flats and 4,000 square feet of office space, with Esso as a key tenant.[29]

## Corporate history

[edit]

### Background

[edit]

The Lombard Building at Queen St, 1978

In the mid‑1950s, Polish immigrant Paul Fayman partnered with several Jewish law‑firm partners, retail‑chain proprietors, industrialists and real‑estate developers to form a mutual consortium.[Note 1] Initially incorporated as Development Consolidated, the group later adopted the name Masaga Group, establishing its headquarters in Melbourne’s Lombard Building on Queen Street. Fayman, who had honed his sales expertise in post‑war Germany, served as managing director. Some of his closest associates—Maurice Slonim, Leon Velik, and Joseph Emanuel—collectively operated one of the largest law firms in post‑war Melbourne (Slonim, Velik & Emanuel).[30][31]

Directors & associates of consortium, c. 1959

In July 1960, Development Consolidated and Payne Properties submitted an ambitious 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."[32] Although the Melbourne and Metropolitan Board of Works granted provisional approval, the project was ultimately abandoned.[33] 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.[34]

Forest Hills Shopping Centre, 1968

Concurrently, the group diversified through Wright Bros Development Pty Ltd, an offshoot of the Wright Bros delicatessen chain. Under Fayman’s leadership, Wright Bros undertook a series of mixed‑use developments in Melbourne’s burgeoning suburbs.[35] Among these was a major project in Clayton, on a former agricultural site between Wellington and Dandenong Roads.[36] It was here that the £70,000 Hotel Monash complex, designed by local architect Clive Tyres, opened in 1963 as the first licensed hotel-motel in metropolitan Melbourne.[Note 2][37] Situated within walking distance to the Village Clayton Drive-In and Monash University, it was established alongside several industrial sites, a 90-lot housing estate, a small strip of shops and two service stations.[38]

Real estate and investment group (1969–1979)

Between 1959 and 1961, Fayman commissioned the Borrack Square Shopping Centre in Altona North. Comprising specialty 30 shops, a large supermarket, and off-street parking, the centre was developed in tandem with the adjacent Central Hotel (now Millers Inn). It became the first licensed hotel in the area and was designed by notable commercial architects Jorgenson & Hough, who also designed the Burvale and Manhattan Hotels. An adjoining 110-lot residential estate was also subdivided by Wright Bros Development, creating Duke Street, Cherry Avenue and Murphy Street.[39][40] Other significant residential estates undertaken by the group include the 220-lot Waverley Views Estate in Glen Waverley (1958–1963),[Note 3][41] the 51-lot Warragul Park Estate in Warragul (1960),[Note 4][42] and the gargantuan Eliza Downs Estate in Frankston (1960s–1970s).[43] The group also owned and operated the Shepparton Indoor Bowling Centre, which opened in July 1963 and became a local success.[44]

Drawing of Hanover development, 1970

In 1963, while Fayman was showing developers Maurice Alter and George Herscu around his half-built Forest Hill Shopping Centre, Herscu abruptly declared: "Why just buy the shops? I want to buy the whole centre!".[45] Alter and Herscu joined his consortium and their company, Retail Developments, began establishing large-format retail stores that were leased to national chains such as Woolworths, Coles, and Safeway.[46] Around a hundred smaller retail sites and individual shops were built, particularly in Melbourne's outer suburbs like Fawkner and Box Hill but also regional centres such as Morwell and Niddrie.[47][48][49] Alter had begun his property career in the early 1950s with the purchase of a bank and two retail shops in Kew, gradually building a modest real estate portfolio. Around the same time, Herscu entered the property sector through the acquisition of a milk bar in Yarraville, which he refurbished and sold with the help of a Czechoslovakian migrant he had met at a local gymnasium.[50]

### Takeover to create Hanover Holdings

[edit]

In 1968, the Alter–Herscu–Fayman partnership began formulating plans to secure a listing for Masaga Investments on the Stock Exchange of Melbourne.[51] Rather than pursue a traditional initial public offering (IPO), the group opted for a reverse takeover—targeting Allans Finance, a publicly traded company under the control of the Allans Music Group. The strategy, devised by Paul Fayman, the so-called "financial expert" of the trio, was designed to provide access to public capital markets without the regulatory complexities associated with a full IPO.[52]

Hanover Chairman and Ringwood Mayor start work on shopping centre, c. 1969

By February 1969, Masaga moved forward with its plan by engaging Reid & Co., a prominent Collins Street stockbroker. On 28 February 1969, Reid & Co. issued a letter to Allans Finance shareholders announcing an offer to purchase any available shares at 50 cents per share, valid through 28 March 1969. The Allans Group, which held approximately 31% of Allans Finance, initially declined the offer. Company secretary F. H. Davidson subsequently stated: "It is the view of Allans Music (Australia) Pty. Ltd. that the offer is below the true worth of the Company and is not acceptable to them."[53]

Just over two weeks later, Reid & Co. increased the offer to 55 cents per share. This revised bid prompted the Allans Group to sell its 436,000 shares.[54] It was subsequently revealed that Reid & Co.'s client had also strategically acquired a further 400,000 shares from Hartleys Limited, another significant shareholder in Allans Finance.[55] Despite these purchases, Masaga still did not hold a controlling interest, leading to a subsequent takeover offer that proposed the allotment of an additional 350,000 shares at 55 cents each to Reid & Co., acting on Masaga's behalf.[56] Meanwhile, Allans Finance Chairman Geoff Alan urged shareholders to hold off on accepting the offer. However, on 25 March, the offer price was once again confirmed at 55 cents, and the identity of the acquirer was finally disclosed—Masaga Investments. Through these carefully orchestrated transactions, Masaga secured a 64% controlling stake in Allans Finance, which was eventually increased to approximately 70%.[57]

On 15 April 1969, a new board of directors—comprising Paul Fayman, Arnold Bloch, and Fredrick Dodd—formally assumed control of the holdings company. Following a subsequent reconstitution of the board, Paul Fayman was appointed Managing Director of the holdings company, while Arnold Bloch and Fredrick Dodd were appointed as Directors. Alwynne Rowlands was elected Chairman, and Maurice Alter and George Herscu were appointed Managing Directors of the company's two principal subsidiaries. At the request of Allan & Co, the company was renamed Hanover Holdings Limited and re-listed on the stock exchange under its new identity on 20th May 1969.[58][59]

Advertisement, 1974 Dandenong Hub Arcade in 2025

The three controlling shareholders agreed to sell a range of properties from their private companies to Hanover, mainly comprising leaseholds, commercial developments, and subdivision/home building projects, with a combined asset value of approximately $3 million (about $44 million in 2024).[60] Maurice Alter was assigned managing director of Hanover Properties–a principal subsidiary of the conglomerate–which was established to oversee development and management of property for retention as permanent investments. Similarly, George Herscu became managing director of Hanover Developments, which would develop properties for resale as investments. A third principal subsidiary, Hanover Management, was established to provide management for the group and control of expenditure on its behalf.[61]

The new directors, who saw the future of Hanover as lying principally within the field of real estate development, assured shareholders in their first annual report that: "The financial strength of the Company will be based upon a substantial holding of sound realestate by way of permanent investment, whilst at the same time the company will engage in the development of commercial, industrial, and residential projects for resale."[61] Masaga subsequently carried out a survey of the business formerly conducted by Allans Finance and came to the conclusion that having regard to the relatively small amount of loan funds presently held by the company in proportion to capital, it was uneconomical for Hanover Holdings to continue to carry on the same type of money lending business which has been conducted in the past.[61]

### Interstate expansion

[edit]

Hanover Holdings was listed on the Sydney Stock Exchange (SSX) on 21st January 1971 and a regional office was opened in the IAC building on Carrington Street in late 1972.[60] Later that year, company Chairman James F. Hemphill announced that Hanover would kickstart its Sydney operations with a commercial and retail development project in the inner suburb of Marrickville worth $10m (AUD$126m in 2024). The 10-acre site, bounded by Sydenham, Park and Livingstone Roads, had been sold to Hanover under a conditional contract. Marrickville Council subsequently granted Hanover approval to build a shopping centre with two major department stores, 80 variety shops and parking for 2000 cars. However, the site was acquired by the NSW Education Department which constructed the Wilkins Public School on the site.[62][63]

Hanover briefly struck a deal with Eddie Kornhauser in 1974, buying half of his interest in the Chevron Hotel at St Kilda Road. In conjunction with the deal, the Kornhauser family got a 25 percent interest in a project Hanover had going in Surfers Paradise. The plan envisaged construction of a $30 million hotel-casino on the historic Surfers Paradise Hotel site, which Hanover had purchased for $4.7 million.[64] This partnership was dissolved by mutual agreement in 1975.[65]

Model of proposed Marrickville Mall, 1972

### International activities

[edit]

At the Company's annual meeting for 1973, directors announced to shareholders that Hanover would start investing overseas to stabilise operations after rapid formative growth. It was declared that negotiations had been done in West Germany, Canada, London, and the United States. Deputy Chairman Paul Fayman subsequently revealed that three joint ventures had commenced in Israel, which would see the construction of flats, offices, a shopping complex and a hotel.[66] Fayman told shareholders that under Israeli law, private and commercial buildings could be pre-sold before building commenced to provide finance for the projects. One proxy holder, Ramsey Rose, expressed surprise that Hanover had decided to open an office in Israel and to invest in that country, stating "surely it is a high-risk area". Hanover Chairman James Hemphill said sites for the ventures had already been acquired but the company was not committed to expenditure on buildings.[66]

By 1975, Hanover had several affiliate companies operating overseas in Holland (as Hanover Property Investments), Netherlands Antilles (as Hanover Holding), Luxemborg (as Hanover International SA), Israel (as Hanover Finance, Hanover Properties and Hanover Investment) and London (as Hanover International UK). Due to economic conditions, Hanover retrenched their overseas operations. It was later stated that "The company is not unwilling to consider in future the development of further overseas projects, but on any realistic assessment it is acknowledged that investment in property generally is likely to remain sluggish throughout the world for another year or two."[13]

### Takeover bids

[edit]

In October 1969, Hanover launched a $3.4 million (equivalent to AUD$49.8 million in 2024) takeover bid for London Stores Limited, a department store group operating across city and suburban locations. Prior to its formal offer, Hanover had been quietly acquiring shares in the company over several months, building a strategic position.[67] However, the bid was soon challenged by the Slater Walker group, which, through its vehicle Beau Monde, submitted a rival offer nearly 40 percent higher than Hanover's.[54] Rather than enter a bidding war, Hanover's board opted to sell its existing stake in London Stores, realising a capital profit of $97,962 (around AUD$1.3 million in 2024). Chairman Alwynne Rowlands stated that the directors considered it more prudent to accept the profit and exit the position than to raise their offer and pursue control of the company.[68]

Hanover Road, Vermont South

In March 1971, Hanover made a $631,872 takeover bid (equivalent to AUD$8.4 million in 2024) for the Australian Mont de Piete Loan and Deposit Co., a long-established pawnbroking firm. Despite initiating the offer, Hanover's directors openly described pawnbroking as "unfashionable," noting that A. Monte's earnings were relatively weak compared to companies in more modern segments of personal finance.[69] The market responded swiftly. Just a day after Hanover's announcement, A. Monte's share price surged from $1.32 to $4, reflecting speculation over the company's potential value and possibly drawing attention from other investors.[70] By May 1971, however, A. Monte's board had recommended that shareholders reject Hanover's offer. In June, Hanover formally withdrew its bid, bringing the attempted acquisition to a close without a deal.[71]

In January 1973, Hanover linked with the Kornhauser Family in a $2.4m (AUD$27.7m in 2024) million effort to keep Australian National Hotels (ANH) locally owned. Their offer came just a week after ANH announced it would raise $3.5 million ($40.4m in 2024) by selling a big slice of the company to Asian interests.[72] The offer, which provided that the 10 million shares be taken up in equal quantities by Hanover and the Kornhauser Family, was ultimately rejected by ANH.[59]

### Affiliate companies and subsidiaries

[edit]

Hanover often applied its branding to retail projects that were not technically part of its corporate portfolio. One prominent example was the highly successful Forest Hill Shopping Centre, which publicly appeared as a Hanover development but was, in reality, operated by an affiliate company controlled by Hanover’s principal directors. The centre's management and holding company, Forest Hill Heights Pty Ltd, was not a formally incorporated Hanover subsidiary and therefore not subject to the same governance structures or shareholder profit entitlements.[13]

By structuring the project in this way, Hanover’s leadership could minimise tax liabilities, insulate the parent company from financial risk, and maintain flexible control — all while benefiting from the Hanover brand's perceived prestige. However, this arrangement also misled many Hanover shareholders, who reasonably assumed that profits from Forest Hill would flow back to the company, when in fact they accrued primarily to the affiliate and its controlling directors.[73] A similar pattern emerged with George Herscu’s Parkmore and Waverley Gardens shopping centres, which likewise employed Hanover branding despite being developed by Murragong Nominees, a company with only one overlapping director and no formal corporate affiliation to Hanover.[74][75][76][77][78]

Sara Heights Estate, 1975

#### Vista Group

[edit]

The Vista Group was a privately owned affiliate company of Hanover Holdings and represented the joint interests of Hanover directors Paul Fayman, Maurice Alter and George Herscu. Its 30 or so subsidiaries focused on subdividing, constructing and selling land in Melbourne's booming outer eastern and south-eastern suburbs. The scheme began in early 1967, when realestate consultant Bill Gelfand proposed the subdivision of land east of Springvale Road in East Burwood (now Vermont South).[79]

Recognising an opportunity to boost the catchment area for their nearby Forest Hill Shopping Centre, Fayman, Alter and Herscu 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.[80] The initial development, named Burwood Rise,[Note 5] 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.[81]

The Burwood Rise Estate, 1970

In early 1970, South Australian hardware merchant and builders' supplier Sellers Holdings bought a controlling interest in Vista as part of their diversification into the Victorian property market.[82] Hanover directors Alter, Herscu and Fayman retained a joint minority share. Subdivision continued at Burwood Rise, but attention was soon focused on Vista's 100 acres on the South side of Burwood Highway, Vermont South. This was broken up and sold to create the Sara Heights Estate, with 260 lots in between Highbury Road and Burwood Highway (in and around Licola Street and Charlnet Drive). Hanover Homes, the residential construction arm of Hanover Holdings, established a few dozen homes on this estate which were sold as house-and-land packages. Land sales concluded by 1977 and the Vista Group was dissolved.[83]

### Alliance with Landall Holdings (Hanover Homes)

[edit]

Landall Holdings Limited logo, 1974

Beginning in mid-1973, Hanover Holdings began acquiring a stake in the Perth-based construction group Landall Holdings. By February 1974, Hanover had secured a 15.74% interest, prompting market speculation about a potential takeover.[25] Landall had been established in 1961 and gradually rose to prominence as a home builder, beginning operations in Victoria through the acquisition of Fulton Constructions in 1968.[84][85] During the early 1970s, the Landall group was heralded as being among the largest residential construction firms in Australia, second only to A. V. Jennings.[86][87]

Controlled by Donald Clark, the company specialised in medium-priced "tradesman-class" homes, based on standard designs, either on a client's own land, or on estates owned by Landall.[88] It began experiencing financial turbulence and was later picked up by Hanover Holdings as low-hanging fruit.[89] In April 1974, the boards of both companies announced that Hanover would invest over $1.2 million ($12.7 million in 2024) to increase its shareholding in Landall from 16% to 49%.[73][90] Hanover's directors pledged not to exceed a 51% stake without making a formal offer to all shareholders and stated that no such offer was currently planned.[91] As part of the agreement, Hanover sold three development sites to Landall, guaranteed $500 thousand ($5 million in 2024) in loan funds, and contributed real estate and financial expertise to support the partnership.[65]

Hanover Home at Vermont South Vermont South Shopping Centre and Hanover Homes, 1975

This strategic alliance formed the basis for Hanover Homes, a joint venture that brought together several construction companies associated with Landall's Victorian homebuilding group.[92] Hanover Homes focused primarily on building houses on Hanover-owned estates, ensuring that homebuilding companies within the Hanover–Landall conglomerates were effectively guaranteed building sites on Hanover's new subdivisions. Under this model, the builder would construct a home on a Hanover-owned lot, which would then be marketed and sold as a house-and-land package through the Hanover Homes banner.[93]

These homes were typically advertised by Hanover's appointed selling agents, often without reference to the specific construction company involved. This approach allowed Hanover to maintain a unified brand identity across its residential developments, even though multiple builders—operating under the Hanover umbrella—were responsible for the construction.[94] The venture also extended to public sector work, with Hanover Homes contracted by the Housing Commission of Victoria to construct homes for their estate in Broadmeadows and St Albans, with a site office established at the corner of Longford Crescent & Thorpdale Avenue.[95]

However, the partnership was short-lived. Landall Holdings, severely impacted by the 1974 collapse of the property market, suffered multi-million dollar losses, was refused Federal aid funding and ultimately went into receivership.[96][97] As a result, the Hanover-Landall partnership dissolved, and the remaining undeveloped lots on Hanover estates were progressively offered for sale through liquidation auctions, a process that continued into the early 1980s.[98][99][100]

### Demise and dissolution

[edit]

Offer to shareholders, 1976

By the first half of the 1974–75 financial year, the company was already showing signs of distress, reporting a 71.2% drop in profits—a sharp decline attributed to the tightening credit conditions that were squeezing property markets across Australia. Amid this financial turbulence, Hanover's executive director Paul Fayman and joint managing directors Maurice Alter and George Herscu moved decisively to consolidate control, increasing their combined stake in the company to 62% of its issued shares.[101][102]

The failure of Landall Holdings had a significant negative impact on Hanover Holdings, both financially and reputationally. As a major investment project under Hanover's portfolio, Landall's collapse led to substantial monetary losses and shook investor confidence in the company's decision-making and risk assessment processes. The fallout strained Hanover Holdings' cash flow and forced a reevaluation of its investment strategy. Additionally, the public and shareholder perception of Hanover suffered, leading to a decline in stock value and increased scrutiny from regulators and stakeholders.[103]

In an effort to stabilise the business and shift direction, Hanover announced a significant strategic realignment in August 1975. The company announced that it would sell nearly $15 million (about $130 million in 2024) worth of retail property assets, an unprecedented transaction at the time and the largest of its kind in Melbourne that year. According to Hanover director Keith Head, the proceeds were to fund a new diversification strategy focused on residential home building, which he described as Hanover's most promising area for future growth. While this move was publicly framed as forward-looking, it also served to free up capital and prepare the company for a more profound internal transformation.[104]

Board of directors, 1975

That transformation arrived in January 1976, when Fayman, Alter, and Herscu—operating through their private vehicle Tallerk Pty Ltd—made a privatisation offer of $19.9 million (about $152 million in 2024) to acquire the remaining shares in Hanover.[105] The bid, which valued the company well below its actual asset base, outraged minority shareholders, who viewed it as a blatant undervaluation. Nevertheless, in March 1976, the directors declared the acquisition unconditional, and the privatisation process proceeded swiftly. Hanover Holdings was officially delisted from the stock exchange on 24 March 1976, and its remaining assets were subsequently divided between the controlling shareholders over the next two years.[106][107]

Behind the scenes, internal tensions among the company's leadership played a significant role in its eventual unraveling. By 1974, persistent rumours suggested that fiery boardroom showdowns had become a regular occurrence on the top floor of Hanover House. A merchant banker familiar with the directors once quipped:

> "With egos like that, they could never work as a team. Fayman thought he was the most cultured. Alter believed he was the smartest and wisest. Herscu thought he had more balls than anyone else—and in a way, he was right, if having balls means rushing into things without thinking them through."

These clashing personalities, compounded by conflicting business ambitions, made sustained cooperation increasingly untenable.[108] The legacy of Hanover Holdings was further tarnished in the years following its dissolution, when Fayman, Alter, and Herscu were implicated in a massive tax avoidance scheme uncovered by government investigators. The operation, which involved falsifying company returns using fabricated names and addresses, was estimated to have defrauded the Federal Government of over $200 million—equivalent to roughly $1.2 billion in 2024 terms. The revelations led to a formal inquiry led by the Corporate Affairs Office under the Liberal government, with investigators Patrick McCabe and David Lafranchi gathering extensive evidence. Hanover's former directors were ultimately identified as primary beneficiaries of the scheme.[109]

## Notes

[edit]

1. ^ Known as Development Consolidated. By 1960, directors included: Pinkus (Paul) Fayman, Joseph Solomon Emanuel, Leon Velik, Maurice Slonim, Jack Sharpe, Ronald Cecil Sharpe. Maurice Alter and George Herscu joined in 1963. Source: Public Record Office Victoria
2. ^ Named changed to Monash Hotel c. 1966. The establishment continues to operate at 2077 Dandenong Road as of July 2025.
3. ^ The Waverley Views Estate was a residential subdivision situated on a former a 54-acre farm site at the north-east corner of Blackburn and Ferntree Gully Roads in Glen Waverley. A 5-acre portion of the land was acquired by the State Government for the Monash Freeway. Built and sold off across several stages between 1958 and 1964, the development comprised over 220 lots including a small architect-designed shopping centre and adjacent corner service station, both of which remain operating today (as at July 2025)
4. ^ Not to be confused with a different subdivision of the same name from 1902, the Warragul Park Estate was developed in the early 1960s and comprised 41 home sites and a proposed group of shops at Burke Street between McCulloch Avenue and Cornish Street.
5. ^ This name is often mis-remembered as Burwood Heights, which was the name of the subdividing company and not the estate

## References

[edit]

1. ^ a b Directory of Australian Shopping Centres. National Council of Shopping Centres. November 1980. Retrieved 11 April 2025.
2. ^ Graham, Tim (17 December 1988). "Supermarkets popular". The Age. p. 50.
3. ^ "Hanover Holdings, City of Dandenong, Commercial Properties To Lease, Hanover Arcade". The Age. 4 April 1970. p. 45.
4. ^ "Watsonia, Shop & Dwelling - Hanover Holdings". The Age. 19 June 1976. p. 68.
5. ^ "Hanover Holdings - Applications are now invited for the selected retail premises listed below". The Age. 6 November 1972. p. 69.
6. ^ Directors Report and Accounts. Hanover Holdings Limited. 17 October 1969.
7. ^ "Shops to let". The Age. 29 October 1969. p. 35.
8. ^ "Retail opportunity - shopping arcade". The Age. 24 June 1972. p. 79.
9. ^ a b Mitchell, John (19 April 1972). "Hanover buys city store". The Age. p. 17.
10. ^ "Balmoral Centre, Frankston". The Age. 19 April 1972. p. 16.
11. ^ a b c "hanover holdings" "AUCTION - Tuesday, 30th September at 10:15 AM at the Douglas Room Windsor Hotel under instructions from Hanover Holdings Ltd., which is carrying out a diversification program and as to part from Messrs. Kliger, Fayman and Lew, solicitors. 12 retail investments, 8 industrial investments, 2 city properties". Australian Jewish News. 19 September 1975. p. 7.
12. ^ "Royal Archer Hotels". The Age. 13 December 1969. p. 27.
13. ^ a b c Annual Report. Hanover Holdings. 1974 – via Melbourne University Archives, Records of Stock Exchange of Melbourne Limited, Boxes 104 & 105.
14. ^ McDougall, Graeme (7 January 1972). "Hanover buys the stockade". The Age: Business Age. p. 9.
15. ^ McDougall, Graeme (18 January 1973). "Leviathan stores goes for $2.5 million+". The Age. p. 13.
16. ^ "For sale by tender, the best address next to the new Stock Exchange, 520 Collins Street, Melbourne". The Age. 14 November 1989. p. 33.
17. ^ "The Fayman Family". Australian Financial Review. 6 April 1990.
18. ^ Mitchell, John (11 April 1973). "Not only developers but tenants, too". The Age. p. 23.
19. ^ a b Baker, Mark (11 March 1972). "Keilor – a growing suburb". The Age. p. 47.
20. ^ East Burwood Drainage Scheme. Dandenong Valley Authority. 1966–1967.
21. ^ Mitchell, John (5 April 1972). "Nobody won - so the land buyer will pay". The Age. p. 16.
22. ^ Vermont South Drainage Scheme. Dandenong Valley Authority. 1969–1974.
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44. ^ "Applications are invited for the lease of a restaurant and snack bar in Shepparton's new modern indoor bowling centre". The Age. 9 March 1960.
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46. ^ The primary corporate entity
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48. ^ "Morwell – 11 shops now being developed in heart of town. Long leased. Reasonable rents. Masaga Investments". The Age. 19 March 1966. p. 55.
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52. ^ Sykes, Trevor (1978). The Money Miners.
53. ^ ""Don't Sell" advice by Allans". The Age. 3 March 1969.
54. ^ a b [Outward Telex] To Adelaide from Melbourne – The directors of Allans Finance Limited announce that they have received definite from Allans Music (Australia) Pty. Ltd. that it has agreed to sell all its shares in this company at 55 cents each on the basis that this offer is to be made available to all other shareholders of the company. Stock Exchange of Melbourne. 26 March 1969 – via University of Melbourne Archives, Records of the Stock Exchange of Melbourne Limited.
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67. ^ "Hanover bids $3.4 million for store". The Age: Business Age. 29 October 1969. p. 15.
68. ^ "Hanover's large capital profit". The Age. 8 October 1970. p. 21.
69. ^ "Bid for pawnee". The Age. 19 May 1971. p. 19.
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72. ^ McDougall, Graeme (27 January 1973). "Business Age: Hanover, hotel family join in casino offer". The Age. p. 20.
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74. ^ "Restaurant opportunity in Victoria's 5th largest shopping complex". The Age. 28 August 1973. p. 2.
75. ^ "Waverley Gardens Shopping Centre Stage 2, Hersfield Developments Corporation". The Age. 2 May 1981. p. 158.
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78. ^ "A shopping investment with strate potential". The Age. 17 February 1988. p. 28.
79. ^ "Realestate company opens new office". Australian Jewish News. 28 February 1969. p. 29.
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81. ^ "Burwood Rise, another "Vista" development". The Age. 27 December 1969. p. 23.
82. ^ Annual Report. Sellers Holdings Limited. 1970.
83. ^ "Law notices". The Age. 23 September 1975. p. 21.
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85. ^ "LANDALL BUYS VICTORIAN CO. – Landall Holdings Ltd. has acquired all the issued capital of a Melbourne homebuilding company, Fulton Constructions Pty. Ltd". The Western Australian. 12 October 1968 – via Melbourne University Archives, Company research files compiled by JB Were and Son: Landall Holdings Limited (2000.0017 Unit 0350).
86. ^ "Landall Holdings: Second only to A V Jennings as the biggest home builder in Australia". Business Review. January 1970. p. 24.
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92. ^ "Report Of Affairs: Landall-Fulton Constructions Pty Ltd". Australian Securities Index Commission (ASIC).
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95. ^ Report of Royal Commission into Certain Housing Commission Land Purchases and Other Matters. Federal Government of Australia. 15 October 1981.
96. ^ "Landall crisis won't hurt Hanover, directors say". The Sydney Morning Herald. 22 October 1974. p. 25.
97. ^ "Federal 'no' beat Landall – The refusal of $3 million Federal aid led directly lead to the failure of the big WA development company, Landall Holdings Ltd". The Western Australian. 21 October 1974 – via University of Melbourne Archives, Company research files compiled by JB Were and Son, Landall Holdings Limited (2000.0017 Unit 0350).
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99. ^ Flint, Barry (25 November 1978). "Landall has $5m deficit". The Age. p. 19.
100. ^ "Landall is still in business, receivers say". The Age. 11 November 1974. p. 3.
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102. ^ Davidson, Christopher (5 January 1975). "Massive slump in Hanover profit". The Age. p. 19.
103. ^ "Federal 'no' beat Landall – The refusal of $3 million Federal aid led directly lead to the failure of the big WA development company, Landall Holdings Ltd". The Western Australian. 21 October 1974 – via University of Melbourne Archives, Company research files compiled by JB Were and Son, Landall Holdings Limited (2000.0017 Unit 0350).
104. ^ "hanover holdings" "AUCTION - Tuesday, 30th September at 10:15 AM at the Douglas Room Windsor Hotel under instructions from Hanover Holdings Ltd., which is carrying out a diversification program and as to part from Messrs. Kliger, Fayman and Lew, solicitors. 12 retail investments, 8 industrial investments, 2 city properties". Australian Jewish News. 19 September 1975. p. 7.
105. ^ OFFER BY TALLERK PTY. LTD. TO THE SHAREHOLDERS OF HANOVER HOLDINGS LIMITED. Slonim Velik & Emanuel. 7 January 1976 – via University of Melbourne Archives, Records of the Melbourne Stock Excange.
106. ^ McDougall, Graeme (26 November 1975). "Hanover gets inside offer". The Age. p. 21.
107. ^ Clarke, Anthony (18 March 1976). "Hanover offer to close soon". The Age. p. 18.
108. ^ Hills, Ben (7 December 1990). "House of cards: Herscu's making ... and breaking". The Age. p. 6.
109. ^ "Hundreds named in tax scheme report". The Age. 28 May 1982. p. 1.

## Company records

[edit]

* University of Melbourne Archives. (1965–76). Records of the Stock Exchange of Melbourne Limited, Boxes 104 & 105: Hanover Holdings Limited
* University of Melbourne Archives. (1958–1972). Company research files compiled by J. B. Were & Son: Hanover Holdings Limited