Bathla Group cited a "perfect storm" including a property market downturn and rising construction costs in announcing on Tuesday it had called in insolvency specialists Teneo to restructure the business.
The developer, which has thousands of homes under development in Sydney's west, is being closely watched by the state's construction regulator.
A spokesperson for the NSW Building Commission told AAP on Tuesday it was closely monitoring the situation.
"Building Commission NSW is aware the companies trading as Bathla Group have been placed into voluntary external administration," it said.
It urged affected owners, customers and contractors to liaise with the administrator and said the regulator would prepare communications to advise customers on next steps.
Bathla Group joins a long list of Australian home builders and developers which have recently entered voluntary administration or liquidation.
Founder and director Bhart Bhushan described the move to voluntary administration as an "orderly restructure of business".
"Our first thoughts are with our employees and the customers who have put their faith in us to deliver their dream of home ownership," Mr 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."
Mr Bhushan said the decision had been taken in the best interests of all stakeholders to continue delivering housing in key markets.
He said the group had confronted a "perfect storm" of circumstances that contributed to its struggles, including changes in the federal government's May budget and falling buyer confidence.
As voluntary administrator, Teneo has taken control of Bathla and its subsidiaries to assess its overall financial position.
Head of the administrator's financial advisory, Stephen Longley, said its priority was stabilising the group's development pipeline.
"Our objective is to ensure project continuity wherever practicable and work with lenders to minimise disruption for employees, customers and contractors," he said.
Documents filed with ASIC state Teneo has been appointed as administrator of the company and its related entities.
Multiple media reports state Bathla's major corporate entity, Universal Property Group, had more than $3 billion in liabilities as of June 2025.
According to the Bathla website, the family-owned company was established in NSW in 1997 with the aim of delivering high-quality, affordable homes.
It expanded into regional NSW, South Australia and most recently Victoria, with more than 7000 dwellings in the pipeline, its website stated.
In the 2025/26 financial year, 1522 construction firms have collapsed in NSW, including Bathla Group, Beechwood Homes, Novati Constructions and Built Lifestyles in 2026.
13°C