Receivers move on Bathla's Kellyville properties as collapse deepens
THE collapse of Western Sydney property giant Bathla Group has taken another turn, with receivers appointed over a completed townhouse development at Kellyville as lenders move to protect their interests.
Melbourne-based private credit fund manager Woodbridge Capital has appointed FTI Consulting as receivers over the Kellyville project, marking the first reported receivership involving a Bathla development since the group entered voluntary administration last week.
The receivers will oversee the sale of 65 completed properties held as residual stock at the Kellyville development.
The move is significant because it potentially signals the beginning of individual secured lenders taking control of Bathla assets rather than waiting for administrator Teneo to develop a group-wide restructuring proposal.
Bathla's financial structure involves dozens of lenders and billions of dollars of borrowings secured against completed properties, developments under construction and undeveloped land.
Woodbridge is reportedly among lenders in the stronger position because its security relates to completed properties that can potentially be sold relatively quickly.
The Australian reports sales are already being achieved at or above assumed valuations on properties at the Kellyville site.
However, if other lenders follow Woodbridge and appoint receivers over individual Bathla assets, it could make attempts to restructure and preserve the sprawling development group as a single operation increasingly difficult.
The development comes less than a week after Bathla Group entered voluntary administration, placing the future of thousands of homes across Western Sydney and elsewhere under scrutiny.
Administrators Teneo have been attempting to secure funding to maintain construction while assessing Bathla's extensive portfolio.
Around 2,000 homes are currently under construction, while approximately 13,000 additional homes are in the development pipeline.
The NSW Supreme Court has previously heard Bathla has 219 active construction projects, including 45 in the construction phase.
The situation worsened on Friday when Bathla staff were stood down after the NSW Government rejected an approach from administrators for financial assistance.
The government said it did not have a complete picture of Bathla's financial position and was unwilling to put taxpayers' money at risk to guarantee returns for private creditors.
The Kellyville receivership now raises the prospect of Bathla's extensive Western Sydney property portfolio being broken up as secured lenders independently seek to recover their money.
That outcome could leave administrators overseeing remaining unfinished developments and land while creating further uncertainty for home buyers, contractors, suppliers and unsecured creditors awaiting clarity over their position.
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