Bathla Group, one of Sydney’s largest developers of affordable homes, has collapsed into voluntary administration after months of mounting financial pressure, leaving thousands of homebuyers uncertain about the fate of their deposits and unfinished projects.
Administrators from restructuring firm Teneo were appointed on Tuesday to the group’s main corporate entity, Universal Property Group, as well as Raj & Jai Construction, a company linked to the Bathla Group, according to documents filed with the Australian Securities and Investments Commission.
Bhart Bhushan, the founder and managing director, described the move as an “orderly restructure of business” and said the company had been hit by a “perfect storm” of softening sales, the impact of federal budget tax changes, and higher construction costs that the group had absorbed.
“Our first thoughts are with our employees and the customers who have put their faith in us to deliver their dream of home ownership,” Bhushan said in a statement on Tuesday. “It is my sincere hope this process can allow that to happen by working collaboratively with the administrators, our suppliers, contractors and lending partners.”
The collapse is the latest in a wave of failures across Australia’s…