Aug 25 (Reuters) – Bathla Group, an Australian residential property developer, called in external administrators to help restructure itself as it navigates a “perfect storm” of softening sales, rising costs and tax changes aimed at improving affordability.
The privately owned employer of 226 people had A$3.2 billion ($2.29 billion) in liabilities as of June 2025, regulatory filings show. The company hired restructuring firm Teneo to ensure it can continue supplying housing in Sydney, its main market, and elsewhere, according to its website.
Bathla’s move comes amid turmoil in the Australian housing market, which has seen sale prices and volumes decline through 2026. The U.S.-Israeli war on Iran has driven up materials costs and interest rates, and the government cut tax concessions for investment properties in its May budget.
It also presents a blow to a federal government goal to have 1.2 million homes built by 2030 to address a housing shortage. Bathla currently has thousands of homes under construction, according to media reports.
“A perfect storm of circumstances … contributed to the group’s circumstances,” the company’s website said.
The causes included “a significant softening in sales, impacts from the changes made in the Federal Government’s May Budget and falling confidence in key markets,” the company said.
The changing market conditions “coincided with significant increases in construction costs which have been absorbed by the group,” it added.
The administrators’ 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, Teneo said in a statement.
Established in 1997, Bathla says it develops budget-friendly housing estates, townhouses and apartments in the states of New South Wales, South Australia and Victoria.
Last month, ASX-listed investment manager Centuria Capital Group said it loaned A$4.5 million to a subsidiary of Bathla Group.
According to Australian media, Bathla’s lenders include PAG Asia Capital, CVS Lane Capital Partners, Balmain, Ray White Capital, Keyview, Credit Connect in Queensland and La Trobe Financial.
Representatives of the reported creditors did not immediately respond to requests for comment.
($1 = 1.3982 Australian dollars)
(Reporting by Sherin Sunny and Sneha Kumar in Bengaluru; Editing by Byron Kaye, Thomas Derpinghaus and Jamie Freed)
Comments