Major NSW property developer enters administration
Bathla Group says tax changes, softening sales and construction costs have led to its plight.
Sydney-based residential property developer Bathla Group has entered administration following prolonged financial difficulties, according to documents filed with ASIC. Administrators from Teneo were appointed to both Bathla Group's main corporate entity, Universal Property Group, and Raj & Jai Construction, a company associated with Bathla Group, on Tuesday.
Bathla Group specializes in the construction of affordable homes, townhouses, and apartments, primarily in Western Sydney suburbs like Schofields, Marsden Park, and Tallawong.
In an Instagram post, Bathla Group's managing director, Bhart Bhushan, attributed the company's predicament to a "perfect storm" of declining sales, the impact of tax changes, and escalating construction costs. As of June 30 last year, Universal Property Group had liabilities totaling $3.2 billion, a significant portion of which was reportedly owed to private credit funds.
The administration of Bathla Group is expected to heighten scrutiny of the company's heavy reliance on private credit to finance its property developments. The administrators will now assess the financial standing of the affected companies as part of their investigation process.
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