A major Sydney property developer has fallen into administration, casting uncertainty over as many as 15,000 unfinished homes and putting about 500 jobs at risk.
The Bathla Group entered voluntary administration on Tuesday with estimated debts of $3.6billion.
Teneo administrators have been brought in to conduct an immediate review of the group’s finances and work to steady the business.
Its key entity, Universal Property Group, is understood to owe close to $3.2billion, while another business, Raj &Jai Construction, recorded $304million in liabilities at the end of the 2024-25 financial year.
Administrators have begun urgent talks with lenders as they seek a path forward.
“Our priority is to stabilise the business so that construction activity and property settlements can continue in the ordinary course,” Teneo’s head of financial advisory, Stephen Longley, said.
“Our objective is to ensure project continuity wherever practicable, and [to] work with lenders to minimise disruption for employees, customers and contractors.”
Bathla is known for developing more affordable housing estates, townhouses and apartments across Sydney, with projects in fast-growing north-west suburbs including Schofields, Marsden Park and Tallawong.
The Bathla Group went into voluntary administration on Tuesday, owing more than $3billion
Up to 15,000 homes under construction are now in limbo
Bathla Group builds budget-friendly housing estates, townhouses and apartments across Sydney
The company is also a major and front-of-shirt sponsor for A-League club Western Sydney Wanderers.
Bathla Group managing director Bhart Bhushan cited a ‘perfect storm’ of softening sales, tax change impacts, and higher construction costs.
‘These changes in market conditions have had flow-on effects to lending markets, putting further pressure on the business,’ a statement read.
He said that the decision was made in the best interests of all stakeholders to provide the best feasible opportunity to continue delivering much-needed homes across Sydney amid a critical housing shortage.
‘Our first thoughts are with our employees and the customers who put put their faith in us to deliver their dream of home ownership,’ Mr Bhushan said.
‘It is my sincere hope this process can allow that to happen by working collaboratively with the administrators, our suppliers, contractors and lending partners.’
Bathla chief executive Robert Loader added: ‘The business has been through a period of declining sales and falling property prices, while construction costs have increased.’
‘We will work constructively with the administrators to support the continued delivery of much-needed housing for western Sydney.’
The decision leaves up to 15,000 unfinished homes in limbo. Pictured is a Bathla Group project
Bathla Group managing director Bhart Bhushan cited a ‘perfect storm’ of softening sales, tax change impacts, and higher construction costs
Just last week, the company was spruiking the ‘advanced’ progress of one of its major construction projects – a 339-apartment development in Rouse Hill.
‘Across the site, significant progress is being made as we move closer towards completion, with the buildings, residences and surrounding spaces continuing to take shape,’ the social media post added.
Construction watchdog Building Commission NSW has conducted dozens of inspections of Bathla sites in recent months.
A former taxi driver, Mr Bhushan founded Bathla Group in 1997, which he co-owns with his brother, Rajinder Mohan.
The company has $15billion worth of affordable housing projects under project pipeline, according to its website.
Bathla Group joins a growing list of construction and development companies plunged into administration or liquidation in recent years amid rising costs and crippling labour shortages.
