Westpac has walked away from financing the “world's biggest brothel”, the proposed 42-room megaplex on Parramatta Road opposite Sydney University.

The bank had come under pressure to abandon its role financing the brothel project when BusinessDay revealed an investor presentation two weeks ago showing Westpac as the senior financier on the deal. National Australia Bank was also a financier.

Stiletto's at 82 Parramatta Road in Camperdown. Credit:Domino Postiglione

In a release to the Australian Stock Exchange today, Delecta, the company behind the development controlled by adult sex toy and porn kingpin Malcolm Day, said it was in the process of seeking alternative funding arrangements.

“The company has been notified that the offer from Westpac Banking Corporation to fund the acquisition of Dalway Enterprises … has been withdrawn.”