Key Highlights

  • The Bathla Group has been placed into voluntary administration, with Teneo appointed as administrators, prompting an update from the Trust on its Loan exposures.
  • The Trust holds two loans totalling $18.3 million secured by first mortgages over 12 completed homes and 13 land lots in Western Sydney, and two loans totalling $13.3 million secured by 137 titled apartments and townhouses.
  • The Responsible Entity says the Trust's remaining loans are in full compliance with terms, with no corporate or related party loans and no borrowings or back leverage.
  • The Trust held $6.8 million in cash as at 25 August 2026 and is trading at an 8.4% discount to its $5.95 net asset value per unit, with capacity to buy back up to 6.0% of units on issue.

360 Capital Mortgage REIT (ASX:TCF) units were recently trading at $5.38, down 1.28% on the day, as the Trust's responsible entity, 360 Capital FM Limited, issued an update on its exposure to the Bathla Group, which has been placed into voluntary administration with Teneo appointed as administrators. The update details the Trust's specific loan exposures to the borrower and confirms the status of its remaining loan portfolio.

Bathla Group Loan Exposures

Following receipt of notices that the Bathla Group had entered voluntary administration, the Responsible Entity said it is monitoring developments and will take an active role, alongside the administrator, in appointing selling agents over two loans totalling $18.3 million. These loans comprise registered first mortgages secured over 12 completed homes and 13 individually titled land lots in Western Sydney.

The Trust also holds a further exposure of $13.3 million across two loans, secured by 137 individually titled apartments and townhouses. The Responsible Entity said all remaining loans in the portfolio, not associated with this borrower, remain in full compliance with their loan terms and covenants.

Portfolio Structure and Recovery Expectations

The Responsible Entity noted that under its management, the Trust has never held any borrowings or back leverage, with all loans comprising registered mortgages across 168 individual titles in its portfolio, and that the Trust carries no corporate loans or related party loans. Based on currently available information and the security held, the Responsible Entity said it expects full recovery of the outstanding principal, interest, penalty interest and any associated costs related to the Bathla Group exposures. The Trust said it will continue to make monthly distributions and will provide unitholders with further updates as the situation develops.

Cash Position and On-Market Buyback

As at 25 August 2026, the Trust held $6.8 million in cash. Based on the Trust's ASX trading price of $5.45 per unit, the Trust was noted as trading at an 8.4% discount to its net asset value of $5.95 per unit. The Trust retains capacity under its current on-market buyback to acquire up to 6.0% of units on issue, and the Responsible Entity said it will commence the buyback, depending on the trading price of TCF when normal trading resumes, if it believes this is in unitholders' best interests. 360 Capital Group, its associates and Directors of the Responsible Entity collectively hold 10.4% of units on issue and will not participate in the buyback.

Conclusion

The update confirms that 360 Capital Mortgage REIT's exposure to the Bathla Group's administration is contained to specific first-mortgage loans totalling $31.6 million, secured against a defined pool of residential titles, with the Responsible Entity expressing an expectation of full recovery given the underlying security. With the remainder of the loan book reported to be in compliance and the Trust holding cash reserves and buyback capacity, the situation will continue to be monitored as the administration process, led by Teneo, progresses.