Real estate company Deutsche Invest Immobilien reports further bankruptcies

Real estate company Deutsche Invest Immobilien reports further bankruptcies

The real estate company Deutsche Invest Immobilien (d.i.i.) is once again in trouble and has to file further insolvency proceedings within the company. According to a statement from the company, 14. GmbH & Co. Closed Investment-KG will soon file for bankruptcy and d.i.i. 14. Neubau E GmbH in Frankfurt has already filed for insolvency. The company plans to file bankruptcy petitions for four additional companies in the near future. The real estate group primarily manages residential construction projects and has a portfolio of properties worth four billion euros at 50 different locations.

The market conditions in recent years have been particularly challenging, severely impacting the new building fund 14 and the “Viktoria Quarter” project in Wiesbaden. High construction costs due to material shortages and delivery difficulties combined with declining demand for condominiums due to high interest rates have put a strain on the project. The construction and real estate industry has fallen into crisis in recent years, as made clear by the bankruptcies of companies such as the Austrian real estate group Signa and other project developers.

However, the provisional insolvency administrator Romy Metzger expressed optimism for the majority of d.i.i's funds. and does not expect any bankruptcies. Despite financial challenges, the company is working intensively to secure investor funds in order to stabilize the situation in the long term. In view of the negative impact on the entire economy, particularly on housing construction, the federal government is working on measures to stimulate the construction industry. The introduction of building class E, which is intended to simplify and make construction cheaper, is the focus of these efforts and is expected to be implemented soon.