Developer Bathla told to fix defects as it staves off liquidation
Sydney-based developer Bathla Group is facing a major crisis as it enters voluntary administration with $3.3 billion in debt, while simultaneously being ordered to fix serious building defects. Administrators are currently negotiating for emergency funding to pay staff and complete ongoing construction projects.
Why it matters
The collapse of a major developer threatens the housing market and leaves numerous buyers in limbo, highlighting risks in the construction and property development sector.
— 2:46pm , first published 12:40pm
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Share A A A The state’s building regulator has ordered the collapsed Sydney developer Bathla Group to fix serious defects in one of its major projects as administrators continue negotiations with lenders to find short-term funding to keep the company operational.
Bathla’s main corporate entity Universal Property Group has been hit with a prohibition and building work rectification order for its under-construction development in the Illawarra’s Kembla Grange, preventing any buyer from living there until the defects are fixed.
Sue Mancuso and daughter Marie Sinclair stand in front of the fenced-off Kembla Grange development. Wolter Peeters Administrators Teneo on Thursday announced Bathla’s employees would receive a partial payment, covering wages accrued from August 25 when administrators were appointed.
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