Billionaire Bob Ell has assumed control of several stalled construction projects previously managed by building company Bathla, which entered voluntary administration last month with debts totaling approximately $3.4 billion. Mr. Ell’s company, Leda Holdings, a major creditor of Bathla, has taken possession of sites at Marsden Park and Tallawong as mortgagee in possession. Unlike most of Bathla’s lenders, Leda Holdings is directly backed by Mr. Ell rather than external investors.

Bathla’s collapse has left many homeowners facing unfinished properties and financial uncertainty. Julyen Villa-Real, who moved into her Bathla-built apartment in Schofields over a year past its expected completion date, described the condition of her home as poor, citing leftover rubbish, insect infestations, and construction defects such as holes in bathroom tiles and damage to stone benchtops. She reported that following settlement, she discovered that rates owed to Blacktown Council had not been paid despite contract provisions indicating Bathla’s responsibility up to June 30. Ms. Villa-Real said she was forced to cover the outstanding amounts herself to avoid accruing further interest and had to address repair issues with the company, which were eventually resolved but to a substandard level.

Ms. Villa-Real emphasized the need for stronger regulatory accountability for developers and enhanced protections for homeowners, many of whom are making significant financial commitments. Thousands of other buyers, who have paid deposits on Bathla homes, now face indefinite delays, with many projects without a definitive completion date.

Another affected buyer, Deanne Westwood, has reported living in a caravan for over a year after putting down a $65,000 deposit on a home in the Hunter region in July 2022. She described the ongoing delays as profoundly frustrating, noting that the caravan was intended only for holiday use, not permanent residence.

The voluntary administration of Bathla was announced earlier this month, resulting in the stand-down of 213 staff by administrator Teneo. Construction work has been suspended at more than 230 sites spanning Sydney, Melbourne, Queensland, and regional New South Wales. Bathla’s collapse jeopardizes the future of approximately 200 projects in New South Wales, with an estimated 2,000 homes currently under construction and an additional 13,000 planned.

Unsecured creditors, including councils such as the City of Sydney and Blacktown City Council, as well as numerous subcontractors and suppliers—many of which are small family businesses—face uncertain recoveries. Bathla and Teneo have been approached for comment regarding the situation.