‘Urgent’ Talks Under Way as Overextended Bathla Group Collapses

Bathla founder and managing director Bhart Bhushan said in a statement on social media that the administration would provide “the most feasible opportunity to continue delivering much-needed housing in Western Sydney and other key markets”.

Bhushan said that Bathla had confronted a “perfect storm”, blaming sales softening, impacts from changes made in the Federal Government’s May 2026 Budget and “falling confidence in key markets”. 

Bathla chief executive Robert Loader said that administration was in the best interest “of all shareholders” calling it a “proactive decision”.

“The business has been through a period of declining sales and falling property prices, while construction costs have increased,” Loader said in a statement.

▲ Bathla Group founder Bhart Bhushan: Bathla had confronted a “perfect storm”.

Administrators Stephen Longley, Rebecca Gill, Daniel Walley, Adam Colley and Andy Scott have assumed control of the affected companies.

Their “immediate priority” is to stabilise the group’s operations and work with lenders and other key stakeholders to support employees and the continued delivery of projects, the administrators said. 

“Our priority is to stabilise the business so that construction activity and property settlements can continue in the ordinary course, Longley said. 

“Our objective is to ensure project continuity wherever practicable, and work with lenders to minimise disruption for employees, customers and contractors.” 

The writing has been on the wall for Bathla since June, with reports suggesting it had overextended itself with debts of $3 billion. 

Following the administration, the future of major projects throughout Sydney have been thrown into doubt, with a pipeline of an estimated 15,000 homes in jeopardy.

Bathla spirals into administration

The Sydney-based developer has been in emergency mode after being labelled private credit’s “ticking time bomb,” highlighting major exposure in the sector. 

Major investors include Centuria Bass, Credit Connect, PAG Asia Capital, CVS Lane Capital Partners, Balmain, Ray White Capital, Keyview, and La Trobe Financial. 

Another lender, Alceon, exited its approximately $670 million financial exposure to Bathla in January amid mounting debt concerns and restructuring. 

Bathla had reportedly stopped paying suppliers and some of its lenders had effectively taken over projects, funding subcontractors themselves; an emerging trend for struggling projects funded by private credit.

▲ Bathla projects include at Castle Hill, 35km north-west of the Sydney CBD.

Centura Capital Group was forced to defend itself in July this year in a note to the ASX after SQM Research issued a report on Centura Bass’s exposure to Bathla, downgrading the credit fund to “non-investment grade”. 

Centuria told the ASX that Centuria Bass Credit had six loan facilities to Bathla Group, including two construction loan facilities. One load facility had ongoing construction exposure on a project that is “substantially complete”. 

The remaining loans were residual stock loans or land loans which “continue to accrue interest,” it said. 

Centuria Bass has first mortgage security on all its Bathla loan facilities, meaning it has the primary, senior claim over property titles, it said. 

Centuria Capital Group itself provided a direct $4.5 million loan facility to Bathla Group which it said is its only balance sheet exposure.

Centuria and three of Bathla’s other lenders were contacted for comment.

History of Bathla Group

Bathla was founded in 1997 by the Bhushan family, with its home base in Sydney, expanding to regional NSW, South Australia and recently Victoria. 

Its Canterbury residential development was one of its seven Victorian projects. The developer took that project to VCAT earlier this year to increase its residential component.

Bhushan, a former taxi driver, co-owns the company with brother Rajinder Mohan. 

Also known as Universal Property Group, and operating under various UPG vehicles, Bathla was rose to prominence a few years ago, pushing through a pipeline of high-profile projects. 

▲ Bathla Group operated in the more affordable end of the market and was delivering townhouses and apartments.

But its activity has waned in recent years and it had faced setbacks including a compulsory land acquisition by the Blacktown City Council. 

Despite its price claims, while Sydney prices have incrementally declined by around 3.3 per cent on the previous quarter, which affected premium locations in Sydney’s north and east rather that Western Sydney, according to Domain, where Bathla develops the bulk of its projects.

Bhushan said that his “first thoughts were with employees and customers who put their faith in Bathla”.

“It is my sincere hope this process can allow that to happen by working collaboratively with the administrators, our suppliers, contractors and lending partners,” he said.

Further updates on Bathla’s administration will be provided to employees, customers, creditors and subcontractors as the administration progresses.