Insolvency shock in Wiesbaden: D.I.I. Real estate funds are on the brink!

Insolvency shock in Wiesbaden: D.I.I. Real estate funds are on the brink!

On May 22, 2025, the situation for d.i.i investors becomes clear. Deutsche Invest Immobilien AG and its funds are critical. The real estate group filed for insolvency in October 2024, which was officially reported to the Wiesbaden District Court on March 28, 2024. Despite these negative developments, the affected companies' business operations will continue and all managed assets will continue to be under management. However, investors face a significant or even complete loss of their capital.

The d.i.i. The group has launched closed-end funds for private investors (public AIF) since 2020 and manages residential properties worth four billion euros at over 50 locations in Germany. In this context, specific insolvency applications were filed, for example for the Fonds d.i.i. 14, posed. However, the exact impact of these bankruptcies on other funds remains unclear. Investors in the public AIF Wohnimmobilien Deutschland 1 and 2 must expect the loss of their investments.

Legal situation and options for investors

Investors affected by this situation have various options to minimize their losses or seek repayment. An orderly termination of fund investments can often be complex and financially disadvantageous. There is also the possibility of checking special or extraordinary termination rights. Selling investments on trading platforms is often uncertain and can prove to be a lengthy process.

A reversal of the investment is generally possible, especially if claims for damages can be asserted due to errors in advice or incorrect information in the prospectus. This also applies to the liability of limited partners, which can remain in effect for up to five years after the investment has ended. Investors can receive support with the help of the KSR law firm, which has over 20 years of experience in banking and capital markets law and advises injured investors throughout Germany.

Insolvency proceedings in detail

In addition to the companies already mentioned, insolvency proceedings were initiated for d.i.i. Facility Services GmbH, the d.i.i. Property Management GmbH and d.i.i. Homes Berlin GmbH, d.i.i. Homes Rhein-Main GmbH and d.i.i. Homes Rheinland GmbH opens. While the d.i.i. Homes Hamburg GmbH filed for bankruptcy on May 28, 2024, d.i.i. Investment GmbH submitted an application on April 18, 2024, the procedure for which was opened on May 31, 2024.

The d.i.i. Investment GmbH manages 16 AIFs with a total volume of around 621 million euros. In addition, preliminary insolvency proceedings were initiated for the Fonds d.i.i. on October 9, 2024. Residential Real Estate Germany 2 opened, while the Fonds d.i.i. Residential Real Estate Germany 1 is facing silent liquidation. A later filing for insolvency cannot be ruled out.

Investors in closed-end fund investments are often not sufficiently informed about the risks, which can lead to a large number of claims for damages against investment advisors, intermediaries and banks. In particular, errors in sales prospectuses can have legal consequences that affect claims against trustees, initiators or those responsible for the prospectus.

Overall, the situation shows that the d.i.i. Deutsche Invest Immobilien AG and its funds are in a difficult financial situation. Investors should carefully consider their options and consider legal action to best protect their invested capital. Further information on the topic is available anwalt.de and akh-h.de available.