Bathla Managing Director, Bhart Bhushan today announced that he has elected to place the Bathla Group into Voluntary Administration.

He said the decision had been taken in the best interests of all stakeholders, to provide the most feasible opportunity to continue delivering much-needed housing in Western Sydney and other key markets.

Mr Bhushan said the Group had confronted a perfect storm of circumstances that had contributed to the Group’s circumstances. These included: a significant softening in sales, impacts from the changes made in the Federal Government’s May Budget and falling confidence in key markets.

This has coincided with significant increases in construction costs which have been absorbed by the Group.

These changes in market conditions have had flow-on effects to lending markets, putting further pressure on the business.

Mr. Bhushan said the appointment of Administrators provided the clearest pathway to placing the Bathla Group on a sustainable footing and supporting the completion of projects under construction.

Mr. Bhushan said: “Our first thoughts are with our employees and the customers who have put their faith in us to deliver their dream of home ownership. It is my sincere hope this process can allow that to happen by working collaboratively with the administrators, our suppliers, contractors and lending partners.”