Financial regulator BaFin files for insolvency against Deutsche Invest Immobilien

Financial regulator BaFin files for insolvency against Deutsche Invest Immobilien

The construction crisis hit a real estate company from Wiesbaden hard, with Deutsche Invest Immobilien (D.i.i) having to file for bankruptcy. In response to this, the Federal Financial Supervisory Authority (BaFin) imposed a ban on payments and sales against d.i.i. on April 17th. Investment GmbH and filed for insolvency in order to secure the assets in an orderly process. The d.i.i. Investment GmbH, a subsidiary within the D.i.i Group, manages investment funds worth 621 million euros, 16 of which invest in real estate. BaFin will support affected investors and asks them if they have any questions to call 0800 2 100 500.

The parent company of d.i.i. Investment GmbH had to file for bankruptcy before Easter and the company has announced that further bankruptcy filings within the group will follow. BaFin can act on investment companies such as d.i.i. Investment GmbH, which it supervises, can file for insolvency if all other measures have failed. BaFin intervenes if an institution is threatened with insolvency or excessive indebtedness.

The real estate crisis is affecting the entire industry, with companies in the construction and real estate industries having fallen on hard times in recent years. In German housing construction, almost every fifth company is struggling with canceled orders. According to a risk analysis by the insurer Atradius, bankruptcies in the construction industry are increasing significantly. In 2023, the number of bankruptcies in the construction industry rose by around 21 percent compared to the previous year, and the wave of bankruptcies is expected to continue this year.