the decision was made as the company faced a \u201cperfect storm\u201d<\/a> of increased costs and property market pressures.<\/p>\nIt has left thousands of homes in limbo and owners who have bought off the plan at various Bathla sites in its $15 billion pipeline holding their breath.<\/p>\n
Then there are creditors and tradies who funded and worked on the mammoth development projects waiting to see when or if work will resume.<\/p>\n
One lawyer who acts for construction contractors chasing a \u201csix-figure\u201d sum from Bathla said he had been prepared to file District Court proceedings before news of its collapse broke.<\/p>\n
Solicitor Tony Taouk told news.com.au he had been in protracted discussions with the firm since January and had drafted a statement of claim to file in court. <\/p>\n
\u201cBut then the legal landscape changed overnight,\u201d he said.<\/p>\n
\u201cOne day we had District Court proceedings ready to file. Next, the company was in voluntary administration.\u201d<\/p>\n
Do you know more or have a similar story? Email: heath.parkes-hupton@news.com.au<\/p>\n
Mr Taouk said his clients had worked across a number of Bathla developments and were owed a \u201csubstantial amount\u201d.<\/p>\n
\u201cThis is not simply a number on an invoice,\u201d he said. \u201cThis represents construction work, labour, materials that have already been provided.\u201d<\/p>\n
His clients had been waiting for a resolution without going to court as, like many contractors, they were concerned about burning a relationship.<\/p>\n
Now it\u2019s unclear when they will get their money, as administrators first work to keep the company in operation.<\/p>\n
According to its website, Bathla has 22,000 apartments and 5000 homes in the pipeline, largely in western Sydney and regional NSW.<\/p>\n
On Wednesday, the company\u2019s administrators, Teneo, released a statement to say discussions with Bathla lenders \u201cregarding its immediate financial needs are continuing\u201d.<\/p>\n
It said the administrators were on site working through the group\u2019s financial position to understand what can be done to put the Group on a sustainable financial footing.<\/p>\n
Administrator Stephen Longley said: \u201cThis is an extremely complex administration process. Our priority is to secure funding to ensure that the interests of employees, customers, and suppliers are protected to the greatest extent possible. Discussions with lenders are ongoing.\u201d <\/p>\n
The company was formed in 1997 by Mr Bhushan, a former taxi driver, and says it has built more than 15,000 dwellings across 58 suburbs over the past 25 years.<\/p>\n
Media reports state Bathla entities Universal Property and Raj & Jai Construction owe a combined $3.5 billion, mostly to private creditors, as of June 30, 2025.<\/p>\n
Mr Bhushan, in a statement, partially blamed property investor tax reforms in the May federal budget for the state of the company\u2019s finances.<\/p>\n
\u201cMr Bhushan said the Group had confronted a perfect storm of circumstances that had contributed to the Group\u2019s circumstances,\u201d a statement on Bathla\u2019s website and social media pages said.<\/p>\n
\u201cThese included: a significant softening in sales, impacts from the changes made in the Federal Government\u2019s May Budget and falling confidence in key markets.<\/p>\n
\u201cThis has coincided with significant increases in construction costs which have been absorbed by the Group.<\/p>\n
\u201cThese changes in market conditions have had flow-on effects to lending markets, putting further pressure on the business.\u201d<\/p>\n
Mr Bhushan said: \u201cOur first thoughts are with our employees and the customers who have put their faith in us to deliver their dream of home ownership.<\/p>\n
\u201cIt is my sincere hope this process can allow that to happen by working collaboratively with the administrators, our suppliers, contractors and lending partners.\u201d<\/p>\n
Bathla has built budget-friendly properties in estates and apartment blocks around Sydney\u2019s fringe in suburbs like Schofields, Marsden Park and Tallawong.<\/p>\n
It recently shared updates on construction of its unit development at Butu Wargun Dr, in Pemulwuy, and another 339-apartment project at Rouse Hill.<\/p>\n
Bathla had in July plugged new plans for a massive housing estate located in Muswellbrook, in the Hunter Valley, called Alpine. It has also ventured into South Australia and Victoria.<\/p>\n
The company is a major sponsor of A-League club the Western Sydney Wanderers.<\/p>\n
Advisory firm Teneo and administrators Mr Longley, Rebecca Gill, Daniel Walley, Adam Colley and Andy Scott have assumed control of the affected companies.<\/p>\n
Teneo said on Tuesday \u201curgent\u201d talks were underway to maintain construction activity and the ongoing operation of the company.<\/p>\n
Mr Longley, a former partner at PwC, said in a statement: \u201cOur priority is to stabilise the business so that construction activity and property settlements can continue in the ordinary course. <\/p>\n
\u201cOur objective is to ensure project continuity wherever practicable, and work with lenders to minimise disruption for employees, customers and contractors.\u201d<\/p>\n
Bathla chief executive Robert Loader said the company recognised this is a difficult situation, which is why we have taken a proactive decision to appoint voluntary administrators as it is in the best interest of all stakeholders\u201d.<\/p>\n
\u201cThe business has been through a period of declining sales and falling property prices, while construction costs have increased,\u201d he said.<\/p>\n
\u201cWe will work constructively with the administrators to support the continued delivery of much needed housing for Western Sydney.\u201d <\/p>\n
News of the company\u2019s collapse comes just days after a report in the Sydney Morning Herald owners who bought off the plan for Bathla\u2019s Kembla Range project near Wollongong being left stranded by extended completion dates.<\/p>\n
The project was meant to be finished in late 2025 but was now due for November, according to a spokesperson.<\/p>\n
One owner told the Herald she contacted her real estate agent after news of the Bathla collapse, who assured her the project would continue.<\/p>\n
There have been media reports on Bathla\u2019s precarious financial position for several months. In January, the firm hit out over \u201cseveral inaccuracies\u201d contained in media articles regarding the business and its lending relationships.<\/p>\n
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