Revealed: More Than 600 Subbies Caught in Bathla’s Downfall

Bathla Group’s collapse is reverberating across the industry. The immediate fallout has cast a shadow over the private credit sector, the health of builder-developers and the state of the housing market, especially in Western Sydney. While the $3.4-billion collapse plays out, administrators at Teneo have remained tight-lipped about the first round of funding needed to allow Bathla projects to continue, although some deals, including billionaire Bob Ell’s takeover of the Marsden Park and Tallawong sites, have entered the public domain. In the short term, an analysis by The Urban Developer of the Bathla development sites listed on BCI—and cross referenced with state and council development applications, off-the-plan tracking sites and Bathla’s own online presence—has found that developments totalling at least 10,882 homes across about 50 active sites are affected by the collapse. See the full list of affected Bathla projects below The analysis also identified 638 subcontractors connected to Bathla projects, ranging from engineering companies and consultants to alarm companies and scaffolders. These businesses are likely to feel the initial impact of the collapse. Subcontractors feel pain of Bathla collapse According to CreditorWatch chief executive Patrick Coghlan, more than 60 payment defaults have already been filed by suppliers and subcontractors to Bathla. Projects identified by The Urban Developer are at varying stages of development, from pre-construction to nearly complete. “Those that are nearly complete can probably be funded, and it makes commercial sense for lenders to fund it to the end of completion and therefore handover,” Coghlan says. “At the opposite end of the spectrum where nothing has been started, there probably aren’t many suppliers out of pocket just yet, and then of course there’s everything in between.” Insolvencies: Construction ▲ The latest insolvency figures, released on Monday by ASIC, show construction insolvencies rising 179 per cent from July to August. The breadth of Bathla’s collapse is unique, Coghlan says, and will put pressure on suppliers, especially smaller ones—against the backdrop of the latest ASIC insolvency figures. “[That is] especially if they don’t have a huge amount of cash to give them a bit of a buffer. So when they have a loss and a default like this, that can be the difference between continuing to trade and not being able to trade,” Coghlan says. He expects to see subcontractors collapse, some as a direct result of Bathla’s insolvency, others due to it as a contributing factor on top of a sector working with small margins and irregular cash flow. “We’re certainly seeing in our own data and credit reports that there is pressure on some sizable construction and development companies,” Coghlan says. “From a Bathla perspective, every year we get a big collapse and we hope that this is the one big collapse, and [that] there’s no contagion effect.” Light at end of construction insolvency tunnel? Generally, times are tough out there for companies of all shapes and sizes, and the team at CreditorWatch is seeing an “elevated number” of insolvencies. “But we do think it’s at or near the peak,” Coghlan says. And the construction sector has some undeniable tailwinds, including ongoing housing and commercial sector demand. “Naturally, we’re going to see a turnover of companies from an insolvency perspective in this industry, but I don’t think it’s worse at the moment than it has been, and I actually think the conditions are better than in previous years,” Coghlan says. ▲ CreditorWatch chief executive Patrick Coghlan: Subcontractor failures from the Bathla collapse will continue to play out. It’s also important to take a moment to consider some defensive strategies. IPEX chief executive Paul Reid says that construction lending governance typically stops at progress certification. “All lenders verify that the work has been done, but only some have an equivalent governance step on the payment side,” Reid says. “It’s not about predicting or preventing distress, it’s about identifying it early and containing its consequences.” Verifying subcontractor and supplier payments each month means that signs of distress can become apparent much earlier, he says. Coghlan says that transparency and sharing information is critical. “But it’s a good reminder for suppliers and subbies that regardless how big a company is, that there is the potential for them to fail. There are always warning signs in a corporate collapse, Bathla is a good example of that, so due diligence and ongoing customer monitoring is really important,” Coghlan says. Bathla’s biggest projects dead in the water Bathla was forging ahead with developments to the bitter end, with modification applications, marketing, sales and construction all apparently in progress up to August. Some of Bathla’s biggest projects in recent years were being delivered, but a greater number had either failed in the planning process or had not started construction despite approvals, showing the real extent of Bathla’s struggle to keep its apparently healthy pipeline moving. Bathla’s Schofields site at 14 Schofields Road—which it acquired for $80-million from disgraced developer and current fugitive Toplace director Jean Nassif in 2022—was one that failed to move ahead. A modification application in early 2025 was the only sign Bathla was taking ownership of the project, but it showed no further progress. ▲ IPEX chief executive Paul Reid: Due diligence is critical throughout planning and building stages. Similarly, at 6-10 Mount Street, Mount Druitt, 43km west of Sydney CBD, Bathla had submitted a scoping report for 926 apartments in November 2024. SEARS were subsequently issued, but the project never moved ahead. Others suffered hurdles in the planning process. Bathla received refusals for major projects like its 219-apartment project in Liverpool which was refused by the NSW Land and Environment Court in 2024, and another site on the Central Coast, a 414-unit project at 2-4 Clifford Street. It also attempted to push projects through the NSW Government’s Housing Delivery Authority pathway for state significant fast-tracking. However, the HDA did not recommend projects including its 2660-unit development at 34-36 Terry Road at Box Hill —an increase on its originally planned 705 units—as it could not be assessed quickly, and required “significant changes” to development controls. Other projects listed by BCI under the Bathla Group company umbrella include: In planning 1-19 Hughes Avenue, Castle Hill: Plans for 1200 apartments were fast-tracked by the HDA in May 2026. Ketley Circuit, Marsden Park: Plans for 44 townhouses were lodged in February 2026. 7142 Clydesdale Farm Road, Marsden Park: Confirmed as a Bathla project for Farewell Way, for 62 townhouses planned. No further updates following launch. 1082 Richmond Road, Marsden Park: DA submitted to Blacktown Council in April 2025 for 22 apartments. Further information requested by the council, no subsequent planning movement. 34 Spring Mill Avenue, Rouse Hill: Plans for 1045 apartments were HDA approved February 2026 for four towers up to 25 storeys, ground floor retail in one tower. 1080 Richmond Road, Marsden Park: Plans lodged July 2025, referred to council. No further updates available. 1060 Richmond Road and 234 Grange Avenue, Marsden Park: The $46.9 million plans submitted to Blacktown Council in April 2025, with 80 townhouses also planned for 1070 Richmond Road and lodged in 2025. No further updates. 29-31 Second Avenue, Blacktown: Plans were launched on Bathla’s social media earlier this year for 160 apartments and commercial spaces. Approved, pre-construction 15-17 Ashford Avenue, Castle Hill: Bathla acquired the DA-approved site in 2022. Modification applications were submitted to update structural design submitted Oct 2025. Marketing has started but major work has not yet commenced. 12A-13A Pelican Road, Schofields: 328 apartments Demolition of structures application submitted December 2025, after amended plans submitted in May 2025. Construction does not appear to have begun. 30 First Avenue, Blacktown: This office tower project was rejected by Blacktown Council in 2023. Appeal upheld and DA approved by Land and Environment Court in March 2025. Construction not yet commenced, was expected to commence in January 2028. 5-10 Beach Parade, 1-5 Crossingham St and 1-7 Kantara Road, Canton Beach: Plans were submitted in 2023 with Central Coast Council subsequently approving the project in January 2025, but no work appears to have commenced. Bathla’s 600-apartment complex in Edmondson Park at 164 Croatia Avenue was approved in 2022 by a joint regional planning panel, but as of 2026 it has reportedly not left the pre-construction phase. The site was acquired for a reported $52.25m in 2021. 465 Denham Court Road, 1310 Camden Valley Way, Leppington: Approved by the Liverpool Council 2023 for 72 apartments and 32 townhouses. 128 Railway Terrace, Riverstone: 144 approved townhouses apparently in pre-construction. 19 Nelson Road, Box Hill: Subdivision consent secured in 2024, with plans submitted in August 2025 for 31 townhouses. 34 Alex Avenue, Schofields: 13 townhouses approved December 2024, modifications in 2025. 148-158 Bridge Street, Schofields: Modification applications approved in May 2026 for the 48 townhouse project. Was in pre-construction phase, estimated to complete in 2029. 13 Mason Road, Box Hill: 95 apartments in three 7-storey buildings, reportedly in pre-construction, expected to have started later this year. 1-3 Alan Street, Box Hill: Plans for 90 apartments were filed in 2022 and approved in 2024. 1578 Windsor Road, Vineyard: LEC appeal upheld after Blacktown City Council rejected the project for 158 townhouses. 2 Monash Street, Dubbo: Construction certificate issued in June 2026, due to start in the first quarter of 2027. 6 and 7-9 Alan Street, Box Hill: Construction of a seven-storey 70-unit apartment block reportedly underway. 178 units, $39.75 million project approved 2023. 138 Bridge Street, Schofields: Approved for 23 townhouses in 2023, reportedly still in pre-construction. 11 Ingleburn Road, Leppington: 100 apartments in four buildings, approved via the NSW Land and Environment Court after submission in 2022, reportedly in pre-construction phase. 306 South Street, Marsden Park: Acquired by UPG for $43 million in early April 2022, the 212-unit development is currently in the pre-construction and planning phase. Lot 9 Guntawong Road, Riverstone: Plans for 121 apartments were in planning after being submitted in 2020. Plans for another 200 apartments at 150 Guntawong Road were also in planning. Under construction, stalled 51 Butu Wargun Drive, Pemulwuy: Plans for The Peak Residences of 317 units across seven 4-5 storey residential buildings, modifications submitted and approved October 2025. Apartments were being sold by Bathla throughout 2026. Earlier this year, the project team reached a series of key construction milestones. 39-43 Hynds Road, Box Hill: 16 townhouses reportedly construction site is closed midway through the build. 136-146 Donnison Street, Gosford: Kibbleplex Shopping Centre revamp, IPC approved concept masterplan in 2020, following this a design competition was held in 2023, and a detailed state significant detailed DA was submitted in late 2024 . Amendments submitted to the state in 2025 amended the staging, which were subsequently approved. Local media reports that demolition had begun as of December 2025. 143 South Street, Marsden Park: Construction certificate issued in 2025 and reportedly under construction this year for 240 apartments. Construction was progressing earlier this year at Sanctuary Quarter, 25 Macquarie Road, Rouse Hill, a 339-apartment development well into the advanced stages of construction according to a Bathla post August 19. 136-146 Donnison Street, Gosford: Plans for 700 apartments reportedly started construction according to local media. 89-91 and 143 Dongola Circuit, Schofields: 55 two-storey townhouse development reportedly under construction after being approved in 2019. 35-39 Terry Road, Box Hill: 66 duplexes and 65 townhouses approved in 2022 and modifications made in February 2026, appeared to be under construction at the time of the Bathla collapse. 25 Macquarie Road, Rouse Hill: The 339-unit Sanctuary Quarter project was under construction, according to Bathla. 7–9 Terry Road, Box Hill: This 104-unit project was in the final stages of construction by the second quarter of 2026. Do you have updated information on the above or any unlisted Bathla development sites? Email clare.burnett@theurbandeveloper.com .

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Clare Burnett
Wed 16 Sep 26

Revealed: More Than 600 Subbies Caught in Bathla’s Downfall