The situation changed completely overnight: Bathla’s contractors are scrambling to find a way out after the empire built by a former taxi driver collapsed
Creditors are sweating on the fate of Sydney home development giant Bathla after the firm collapsed into voluntary administration on Tuesday, owing more than $3 billion.
Bathla Group’s managing director Bhart Bhushan said the decision was made as the company faced a “perfect storm” of increased costs and property market pressures.
It has left thousands of homes in limbo and owners who have bought off the plan at various Bathla sites in its $15 billion pipeline holding their breath.
Bathla developments under construction in Sydney. Picture: Bathla
Then there are creditors and tradies who funded and worked on the mammoth development projects waiting to see when or if work will resume.
One lawyer who acts for construction contractors chasing a “six-figure” sum from Bathla said he had been prepared to file District Court proceedings before news of its collapse broke.
Solicitor Tony Taouk told news.com.au he had been in protracted discussions with the firm since January and had drafted a statement of claim to file in court.
“But then the legal landscape changed overnight,” he said.
“One day we had District Court proceedings ready to file. Next, the company was in voluntary administration.”
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Bathla Group announced it was being placed in voluntary administration. Picture: Supplied
Mr Taouk said his clients had worked across a number of Bathla developments and were owed a “substantial amount”.
“This is not simply a number on an invoice,” he said. “This represents construction work, labour, materials that have already been provided.”
His clients had been waiting for a resolution without going to court as, like many contractors, they were concerned about burning a relationship.
Now it’s unclear when they will get their money, as administrators first work to keep the company in operation.
According to its website, Bathla has 22,000 apartments and 5000 homes in the pipeline, largely in western Sydney and regional NSW.
On Wednesday, the company’s administrators, Teneo, released a statement to say discussions with Bathla lenders “regarding its immediate financial needs are continuing”.
It said the administrators were on site working through the group’s financial position to understand what can be done to put the Group on a sustainable financial footing.
Administrator Stephen Longley said: “This is an extremely complex administration process. Our priority is to secure funding to ensure that the interests of employees, customers, and suppliers are protected to the greatest extent possible. Discussions with lenders are ongoing.”
One of Bathla’s developments in Rouse Hill. Picture: Bathla
The company was formed in 1997 by Mr Bhushan, a former taxi driver, and says it has built more than 15,000 dwellings across 58 suburbs over the past 25 years.
Media reports state Bathla entities Universal Property and Raj & Jai Construction owe a combined $3.5 billion, mostly to private creditors, as of June 30, 2025.
Mr Bhushan, in a statement, partially blamed property investor tax reforms in the May federal budget for the state of the company’s finances.
“Mr Bhushan said the Group had confronted a perfect storm of circumstances that had contributed to the Group’s circumstances,” a statement on Bathla’s website and social media pages said.
“These included: a significant softening in sales, impacts from the changes made in the Federal Government’s May Budget and falling confidence in key markets.
“This has coincided with significant increases in construction costs which have been absorbed by the Group.
“These changes in market conditions have had flow-on effects to lending markets, putting further pressure on the business.”
Bathla founder and managing director Bhart Bhushan.
Bathla Group chief executive Robert Loader.
Mr Bhushan said: “Our first thoughts are with our employees and the customers who have put their faith in us to deliver their dream of home ownership.
“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 has built budget-friendly properties in estates and apartment blocks around Sydney’s fringe in suburbs like Schofields, Marsden Park and Tallawong.
It recently shared updates on construction of its unit development at Butu Wargun Dr, in Pemulwuy, and another 339-apartment project at Rouse Hill.
Bathla had in July plugged new plans for a massive housing estate located in Muswellbrook, in the Hunter Valley, called Alpine. It has also ventured into South Australia and Victoria.
The company is a major sponsor of A-League club the Western Sydney Wanderers.
Advisory firm Teneo and administrators Mr Longley, Rebecca Gill, Daniel Walley, Adam Colley and Andy Scott have assumed control of the affected companies.
Teneo said on Tuesday “urgent” talks were underway to maintain construction activity and the ongoing operation of the company.
Mr Longley, a former partner at PwC, said in a statement: “Our priority is to stabilise the business so that construction activity and property settlements can continue in the ordinary course.
“Our objective is to ensure project continuity wherever practicable, and work with lenders to minimise disruption for employees, customers and contractors.”
Bathla project Alpine, located in Muswellbrook. Picture: Bathla
Bathla chief executive Robert Loader said the company recognised this is a difficult situation, which is why we have taken a proactive decision to appoint voluntary administrators as it is in the best interest of all stakeholders”.
“The business has been through a period of declining sales and falling property prices, while construction costs have increased,” he said.
“We will work constructively with the administrators to support the continued delivery of much needed housing for Western Sydney.”
News of the company’s collapse comes just days after a report in the Sydney Morning Herald owners who bought off the plan for Bathla’s Kembla Range project near Wollongong being left stranded by extended completion dates.
The project was meant to be finished in late 2025 but was now due for November, according to a spokesperson.
One owner told the Herald she contacted her real estate agent after news of the Bathla collapse, who assured her the project would continue.
There have been media reports on Bathla’s precarious financial position for several months. In January, the firm hit out over “several inaccuracies” contained in media articles regarding the business and its lending relationships.
SOURCE: NEWS.COM.AU
https://www.news.com.au/finance/business/other-industries/bathla-collapse-lawyer-for-creditors-speaks-as-3b-sydney-developer-enters-administration/news-story/8c8c9c2170b601a473d221d7e89d6ef9
