Major NSW property developer Bathla Group falls into administration
Major Australian residential developer Bathla Group has entered voluntary administration due to financial pressures including high construction costs and softening sales. The company, which has a massive project pipeline, is now under the control of administrators from Teneo.
Why it matters
The collapse of a major developer highlights the fragility of the housing construction sector amid current economic headwinds.
Bathla says there were several reasons for its financial issues. ( Supplied: Bathla website )
Major residential property developer Bathla Group has entered voluntary administration. Its main corporate entity, Universal Property Group, reported $3.2 billion in liabilities as at June last year.
Managing director Bhart Bhushan says the developer is dealing with a "perfect storm" of softening sales, tax changes and higher construction costs.
Administrator Teneo says it will assess the group's finances and work with lenders and other key stakeholders to try to deliver projects.
Link copied Share Share article Major Sydney residential developer Bathla Group has fallen into administration after months of mounting financial pressure.
Administrators from Teneo were today appointed to its main corporate entity, Universal Property Group, as well as Raj & Jai Construction, a company linked to the Bathla Group, documents lodged with ASIC show.
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