Centuria aware of problems at Bathla since last year

By the Editorial Team · Friday, August 28, 2026

Centuria Capital knew of financial challenges at Bathla Group months before increasing its funding, and now faces significant exposure following the developer’s recent administration appointment. This situation highlights growing risks in Australia’s private credit market and puts pressure on Centuria and other lenders to manage possible construction delays and investor losses.

Centuria Capital was aware of emerging difficulties at western Sydney property developer Bathla Group as early as December 2025 but continued to provide significant funding to the embattled company, according to statements from the property funds manager. Centuria’s private credit arm, Centuria Bass, which is the largest publicly listed private credit operator disclosing exposure to the developer, has approximately $200 million invested alongside other major lenders including Hong Kong-based PAG and Australian funds manager CVS Lane within a broader $3.6 billion debt portfolio held by Bathla.

David Giffin, CEO of Centuria Bass, said the company implemented measures to safeguard its investments by directing loans through to contractors actively working on Bathla’s western Sydney projects. “We wanted to ensure that the controls were in place to make sure key contractors were on site completing the work that needed to be completed,” Giffin explained. He denied that the introduction of these controls reflected a lack of confidence in Bathla, describing them instead as a precautionary response to “noise” about the group’s operational issues. Giffin also stated that while Centuria was aware of general market concerns, it did not have confirmed reports of contractors not being paid at the time the controls were enacted.

Centuria Bass increased its lending to Bathla in May 2026, though it was not required to disclose any specific difficulties to investors at that time. The developer’s financial troubles culminated this week with the appointment of administrator Teneo over Bathla’s principal entities, including Universal Property Group and Raj & Jai Constructions. Centuria has not had contact with Bathla Group’s chief executive Bhart Bhushan for approximately one month, Giffin said.

The fund manager is now collaborating with Teneo to finalize the projects under administration, prioritizing reaching imminent occupational certificate approvals. Centuria Capital joint CEO Jason Huljich emphasized private credit as a successful segment for the company over the past five years, acknowledging the current heightened scrutiny on the sector and the Bathla collapse in particular.

Giffin said Centuria is exploring all options to protect investor interests, including the possibility of appointing receivers. He expressed confidence that the private credit managers involved will ultimately achieve resolutions for their underlying positions.

Despite freezing $67 million in funds linked to the Bathla exposure, Centuria Capital remains optimistic about opportunities for its broader funds business. The Bathla insolvency crisis follows a growing private credit downturn in the real estate sector, with rival operator 360 Capital holding smaller related loans and funds such as the $2.3 billion MA Secured Real Estate Income Fund limiting investor redemptions due to market pressures.

Bathla’s future remains uncertain, with concerns that the insolvency could halt construction on its projects. Centuria Bass’s exposure includes six loans tied to Bathla, with two supporting construction projects nearing completion and the remainder linked to residual stock loans for completed buildings and land holdings. The unfolding situation is being closely watched as a potential seminal test for the private credit industry in Australia.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.