PAG takes control of Bathla Group sites over $300M debt

• PAG has taken over multiple Bathla Group property sites to recover more than $300 million in unpaid debt.
• The developer's collapse left 2,500 partially built Sydney apartments and a pipeline of 14,000 homes completely stalled.
• Administrator Teneo sought long-term funding to finish construction, but early lender PAG refused to inject further capital into the business.

Asian asset manager PAG has taken control of multiple real estate development sites owned by Bathla Group after the Sydney builder collapsed owing more than $3.4 billion in debts.

Administrator Teneo attempted to secure fresh funding to finish ongoing construction projects, but early lender PAG declined to extend further capital and moved to recoup its $300 million exposure.

"Teneo had been seeking long-term funding to keep the business from collapse," according to court filings presented to the Supreme Court of New South Wales.

The developer's collapse has left 2,500 partially built Sydney apartments and a future pipeline of 14,000 homes in limbo, while administrators work to reconcile roughly $736 million in unreconciled transactions.

Major secured creditors facing substantial losses include RMBL Investments with $319.5 million in claims, Centuria Capital Group (ASX:CNI) via its Centuria Bass joint venture with $282.1 million and Ray White Capital with $216.8 million.

Following the announcement, the Centuria Capital Group share price was unchanged at $1.22.

Founded by the Bhart Bhushan family, the residential developer built budget-friendly townhouses and apartments across suburban western Sydney locations such as Schofields, Marsden Park, and Tallawong.

The administrator's initial investigation revealed severe governance failures across the business, including missing loan documentation and property inventory records that had not been updated since July 1 of last year.