Centuria Capital, one of Australia’s largest ASX-listed real estate and private credit operators, is confronting a potential surge in investor withdrawals.
The pressure stems from mounting concerns over the firm’s exposure to Bathla Group, a Sydney-based residential developer that has become a focal point of distress in the local property market.
Researchers at Morningstar indicate that the decision by a prominent advisory firm to downgrade its rating on the fund has unsettled investors.
The agency warns that this loss of confidence could "spill over" to other private credit funds with similar exposure, potentially triggering a broader sector-wide repricing of risk.
The current turmoil follows a severe assessment by a major ratings agency, which previously declared a Centuria-managed private credit vehicle "uninvestable." That agency cited serious governance failures and alleged that the fund had breached its mandate, compounding the anxiety surrounding Bathla’s financial stability.
Bathla Group, known for large-scale housing projects in western Sydney, is reportedly heavily leveraged.