Home buyers left in limbo after property developer collapse | The Business | ABC NEWS
Thousands of unfinished homes are in limbo after major property developer, Bathla Group collapsed.
Administrators are urgently seeking funds of around $20 million to keep construction going for the next 5 weeks.
About 2,000 homes are under construction, and another 13,000 are in the pipeline.
Bathla had been showing signs of strain in recent months.
Universal Property Group, its main corporate entity, had liabilities close to $3.2 billion as of the end of June last year, and some suppliers, such as construction firm Delta Foundation say it hasn’t been paid in more than 12 months.
Lawyer, Tony Taouk says it represents construction work, labour, and materials that have already been provided.
The property group also relies heavily on private credit to finance its projects – borrowing from a network of non-bank lenders.
That sector been under scrutiny in recent months after expanding into areas banks pulled back from after the global financial crisis, attracted by the ability to charge higher interest rates.
Independent economist Saul Eslake says private credit is inherently opaque or less transparent than many other types of lending.
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Read more here: https://www.abc.net.au/news/2026-08-25/major-developer-bathla-group-administration/107074304
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