Centuria Capital's Growth Ambitions Meet a Private Credit Scare

A $300 million capital raise for data centre and private credit growth was overshadowed by disclosed exposure to a struggling residential developer.

31 Aug 2026 · 2 min read

Centuria Capital Group raised $300 million to fund growth initiatives including its data centre and private credit ambitions, before disclosed exposure to struggling residential developer Bathla Group through its private credit book triggered a sharp sell-off and prompted several fund managers to exit entirely.

A capital raise to fund data centre and private credit growth

Pendal Group said Centuria raised $300 million, equivalent to 17.6 percent of its market capitalisation, to support growth initiatives, with proceeds initially reducing debt and funding an investment in the World Square office tower syndicate in Sydney, before being deployed over time to expand its 50 percent-owned Reset Data business and support growth in private credit. Wilson Asset Management said companies including Centuria are well positioned to benefit from increasing demand for data infrastructure.

A trusted distribution platform with a consistent track record

SG Hiscock and Company said Centuria was a strong contributor to performance in May, having built an excellent distribution platform anchored by financial advice groups and high net worth investors, with a consistent track record across multiple property sub-sectors allowing it to retain the confidence of its investor base and continue growing assets under management.

A struggling developer's exposure triggers a sell-off

Pendal Group said the stock fell 13.7 percent after Centuria confirmed exposure to residential developer Bathla Group through six loan facilities held within its CBCF private credit vehicle, a total lending exposure of $280 million, around 11 percent of private credit assets under management, though this sits predominantly within managed funds rather than Centuria's own balance sheet, with only $4.5 million of direct lending exposure. Pengana Capital Group said Centuria sold off on concerns over its exposure to Bathla Group through Bass Credit, its private credit business, and after reviewing its position, exited the holding given the potential for Bathla's problematic loans to weigh on Centuria's reputation and its ability to grow funds under management. Wilson Asset Management also exited, saying investor sentiment remained weak following the recent capital raising and growing scrutiny of credit risk within the private credit business.

We have reviewed our position and exited the holding, given the potential for Bathla Group's problematic loan exposure to weigh on Centuria's reputation and its ability to grow FUM.

— Pengana Capital Group, Monthly Report, July 2026

What fund managers say they are watching next is resolution of the Bathla Group loan exposure within Centuria's private credit vehicles, whether reputational damage affects future funds under management growth as Pengana fears, delivery of the data centre and Reset Data growth ambitions funded by the recent capital raise, and whether investor confidence in the private credit business recovers.