BaFin intervenes: Wiesbaden real estate giant has to file for insolvency

BaFin intervenes: Wiesbaden real estate giant has to file for insolvency

The construction crisis has hit the Wiesbaden real estate company Deutsche Invest Immobilien (D.i.i) hard. The Federal Financial Supervisory Authority (BaFin) has intervened and filed for insolvency against d.i.i. Investment GmbH, a subsidiary within the D.i.i Group. The company manages investment funds worth 621 million euros, of which 16 funds invest primarily in real estate. BaFin has imposed a moratorium on the assets of d.i.i. Investment GmbH to secure.

The financial regulator has called on affected investors to call 0800 2 100 500 if they have any questions. Investment companies like d.i.i. Investment GmbH cannot file for insolvency of their own. BaFin's intervention highlights the severity of the crisis at D.i.i., and a moratorium will only be imposed if other measures are unsuccessful and there is a risk of insolvency or excessive indebtedness.

The D.i.i. is primarily active in the area of ​​residential construction projects and manages a portfolio of properties worth four billion euros at 50 locations. In recent years, the construction and real estate industry has experienced a deep crisis, which is reflected in an increasing number of bankruptcies. The construction industry as a whole is suffering from a persistently difficult situation, with canceled orders and a lack of new orders, as the Munich Ifo Institute found. The insurer Atradius predicts an increase in insolvencies in the construction industry of between 10 and 15 percent this year.