Crisis at Deutsche Invest Immobilien: Further bankruptcies announced

Crisis at Deutsche Invest Immobilien: Further bankruptcies announced

The real estate company Deutsche Invest Immobilien (d.i.i.) is once again facing the filing of further insolvencies within the company. According to a statement from the company, the insolvency for GmbH & Co. Closed Investment-KG and d.i.i. 14. Neubau E GmbH in Frankfurt is imminent. These developments follow the recent bankruptcy filing of a major German real estate firm. The d.i.i. focuses primarily on the management of residential construction projects and manages a portfolio worth four billion euros across 50 locations. The bankruptcies largely result from the difficult market conditions, which the “Viktoria Quarter” project in Wiesbaden faced in particular. The construction phase of the project took place during the coronavirus pandemic, which led to significant challenges, including cost increases due to material shortages and a shortage of craftsmen. The real estate group is part of a series of bankruptcies in the construction and real estate industry, which has been hit by crises in recent years. Insolvency administrators do not expect any insolvencies for most funds. Intensive discussions are currently being held with investors and banks in order to stabilize the liquidity situation and ensure the long-term continuation of the affected funds. The worrying situation in the construction industry also has consequences for the entire economy. Experts emphasize the importance of the housing market as a crucial economic factor and call for measures to revive the construction industry. This includes the introduction of building class E in order to simplify and make construction projects cheaper. The federal government is working on appropriate measures, the implementation of which is expected this month.