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In Box Hill, the greenfield suburb on Sydney’s north-western urban fringe, the fingerprints of one of western Sydney’s most prolific and aggressive developers are everywhere: rows of identical townhouses and cemented driveways stand on streets which, just a few years ago, did not exist.
But a fenced-off street called Cosmos Way gives a hint of the astronomical ambitions never quite realised: a construction site where more homes were planned is abandoned and flooded.
On its fence hangs bright red hoarding for Bathla, the housing giant now in voluntary administration with more than $3 billion in debts.
Box Hill was the centre of Bathla’s growth plans: the company – or its hundreds of subsidiaries and associated entities – wanted to build more than 500 new homes across multiple sites in this suburb alone. Only some of these have been completed. Its falling into administration has left the future of this suburb, and future residents, uncertain.
The fallout from the administration of one of the state’s largest developers is spreading beyond the north-west. The company’s administrators, Teneo, are working from the company’s Girraween headquarters and trying to untangle what senior managing director Stephen Longley described as an “extraordinarily complex administration process”.
“Our priority is to secure funding to ensure that the interests of employees, customers and suppliers are protected to the greatest extent possible,” Longley said.
The Western Sydney Wanderers football club, of which Bathla was a major sponsor, is attempting to meet with the administrators to “determine the next steps”, a spokesperson said on Tuesday.
With administrators still compiling a list of creditors, questions are being raised about the influence of private credit – the approximately 43 non-banks that propped up the developer by loaning millions of dollars – as well as the impact on people who have purchased sites from Bathla off the plan.
Namrata, a banker who requested her surname not be published, paid Bathla $31,750 in a deposit for a two-bedroom apartment at the edge of the suburb in 2022, with an assurance the unit would be completed by the end of 2024.
She told the Herald that Bathla had extended the sunset clause on her Box Hill apartment to June 30, 2026, and then again to December 2026, citing “unforeseen circumstances”. A sunset clause allows buyers or sellers to end the contract if the plan of subdivision is not registered or an occupation certificate is not issued by a set date.
When she attempted to end her contract this month, the developer was “not agreeable” to entering into a deed of mutual rescission, she was told by email.
“I was promised the apartment would be ready by 2024. When you buy for the first time, you don’t understand the dynamics of the contract, and the contract is so favourable to the vendor,” she said. “It doesn’t have an end date on the sunset clause, and it can just go on and on.”
The real estate agency that sold her the apartment has since collapsed, Namrata said.
Amanda Farmer, a spokesperson for the Australian College of Strata Lawyers, reviewed Namrata’s contract. “Four years under contract without settling is an extraordinarily long time,” she said.
She warned purchasers of Bathla properties to expect a period of uncertainty.
“If the administrator decides that certain projects cannot go ahead and sales cannot [be completed], purchasers should have their deposits returned to them.
“That is cold comfort to someone who has been looking forward to their new home for four years and may now be priced out of the market they thought they were about to enter.”
In January 2025, the NSW government announced a review of off-the-plan contract laws to provide stronger protections for buyers. One of the proposed changes to legislation, exhibited last year but not yet made law, is limiting a developer’s ability to extend sunset dates only for certain reasons beyond the developer’s control, such as weather or supply issues, and imposing time limits on extensions.
“We know that most developers do the right thing, but we don’t want situations where businesses try to run down the clock on a contract to sell to a higher bidder or mislead consumers by unfairly changing the goalposts for when they can move into their dream home,” Minister for Customer Service and Digital Government Jihad Dib said at the time.
Anthony Segaert is the Parramatta bureau chief at The Sydney Morning Herald. He was previously an urban affairs reporter.Connect via X or email.
Ellie Busby is a Parramatta reporter at The Sydney Morning Herald.Connect via X or email.From our partners
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