Real estate company d.i.i. reports further bankruptcies

Real estate company d.i.i. reports further bankruptcies

Real estate giant Deutsche Invest Immobilien (d.i.i.) intends to file further bankruptcy filings for several of its subsidiaries, according to a recent announcement. Among other things, 14. GmbH & Co. Closed Investment-KG is about to declare bankruptcy, while d.i.i. 14. Neubau E GmbH in Frankfurt has already submitted the application. Imminent insolvency filings are planned for four other companies in the company. Deutsche Invest Immobilien is primarily active in the management of residential construction projects and has a portfolio of properties worth four billion euros at 50 locations.

The construction industry in Germany has struggled with significant challenges in recent years, which has led to a wave of bankruptcies in the real estate and construction industries. In particular, the new building project “Viktoria Quarter” in Wiesbaden, part of the Neubau-Fonds 14, ran into difficulties due to the difficult market conditions. The cost of building materials rose due to material shortages and delivery difficulties, while high interest rates reduced buyer demand for condominiums.

The insolvency administrator Romy Metzger expressed optimism about most of the d.i.i. funds, from which she does not expect any insolvencies. The company is also conducting intensive discussions with investors and banks in order to stabilize the liquidity situation in some funds. These measures are intended to ensure that the affected funds can be continued in the long term. The construction crisis not only has an impact on the real estate industry, but also on the entire German economy.

The federal government is working on measures to stimulate the construction industry, including the introduction of building class E in the Civil Code, which is intended to make building easier and more cost-effective. This step could be crucial to boost the construction industry and promote economic growth in Germany. Experts emphasize the importance of the housing market for the German economy and call for quick measures to support the construction industry and mitigate the negative effects of the current crisis.