Aug 25 (Reuters) – Bathla Group, an Australian residential property developer, said on Tuesday it hired 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 company hired restructuring firm Teneo, according to a filing with the Australian Securities and Investments Commission. The company wants 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 as the U.S.-Israeli war on Iran drives up materials costs and interest rates and the government cut tax concessions for investment properties in its May budget.
“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 noted.
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, with operations in the states of New South Wales, South Australia and Victoria.
Last month, ASX-listed Centuria Capital Group said it provided a A$4.5 million ($3.22 million) loan to a subsidiary of Bathla Group.
The investment manager said its Centuria Bass Credit Fund had six loan facilities with the property developer.
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.
($1 = 1.3982 Australian dollars)
(Reporting by Sherin Sunny and Sneha Kumar in Bengaluru; Editing by Byron Kaye, Thomas Derpinghaus and Jamie Freed)
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