'Like a ghost town': Homebuyer saw red flags ahead of developer's collapse
Major Sydney residential developer Bathla Group has fallen into administration after months of mounting financial pressure.
Administrators from Teneo were appointed on Tuesday 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.
Bathla Group is a major developer of lower-cost homes, townhouses and apartments, particularly in Western Sydney suburbs such as Schofields, Marsden Park and Tallawong.
In an Instagram post, managing director Bhart Bhushan said the developer was dealing with a "perfect storm" of softening sales, tax change impacts and higher construction costs.
As at June 30 last year, Universal Property Group had $3.2 billion in liabilities, the of which was reportedly owed to private credit funds.
The collapse is likely to intensify scrutiny of Bathla's extensive use of private credit to finance its property developments as administrators begin assessing the financial position of the affected companies.
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