An embattled Sydney property developer has collapsed.

The Bathla Group went into voluntary administration on Tuesday, owing more than $3billion.

Administrators from Teneo were appointed to undertake ‘immediate assessment’ of the company’s finances in an effort to stabilise operations.

The company’s main entity Universal Property Group, owes almost $3.2billion, while another entity, Raj &Jai Construction, had $304million in liabilities at the end of the 2024-25 financial year.

‘Our priority is to stabilise the business so that construction activity and property settlements can continue in the ordinary course,’ Teneo’s head of financial advisory, Stephen Longley said.

‘Our objective is to ensure project continuity wherever practicable, and [to] work with lenders to minimise disruption for employees, customers and contractors.

Bathla develops budget-friendly housing estates, townhouses and apartments across Sydney, including growing suburbs Schofields, Marsden Park and Tallawong in the city’s north-west.

Bathla Group managing director Bhart Bhushan took to social media to announce the news, citing a ‘perfect storm’ of softening sales, tax change impacts and higher construction costs.

The Bathla Group went into voluntary administration on Tuesday, owing more than $3billion

He added the decision had been made in the best interests of all stakeholders to provide the best feasible opportunity to continue delivering much-needed homes across Sydney amid a critical housing shortage.

‘Our first thoughts are with our employees and the customers who put put their faith in us to deliver their dream of home ownership,’ Mr Bhushan said.

‘It is my sincere hope this process can allow that to happen by working collaboratively with the administrators, our suppliers, contractors and lending partners.’

A former taxi driver, Mr Bhushan founded Bathla Group in 1997, which he co-owns  with his brother, Rajinder Mohan.

More to come.