The Bathla Group, a prominent Sydney property developer, has entered voluntary administration with liabilities exceeding $3 billion. The company's main entity, Universal Property Group, owes approximately $3.2 billion, while another entity, Raj & Jai Construction, had $304 million in liabilities at the end of the 2024-25 financial year.
Administrators from Teneo were appointed on Tuesday to assess the company's financial situation and work towards stabilizing its operations. Stephen Longley, Teneo's head of financial advisory, stated that the priority is to ensure construction activity and property settlements can continue. The administrators aim to maintain project continuity where possible and collaborate with lenders to minimize disruption for employees, customers, and contractors.
Founded in 1997 by Bhart Bhushan, who previously worked as a taxi driver, and co-owned with his brother Rajinder Mohan, Bathla Group specializes in budget-friendly housing estates, townhouses, and apartments. The company has developed properties in Sydney suburbs such as Schofields, Marsden Park, and Tallawong.
Bhart Bhushan attributed the collapse to a "perfect storm" of factors, including softening sales, the impact of tax changes, and escalating construction costs. The company's collapse highlights significant challenges within the Australian property development sector.