30,000 investors in the insolvent Project Real Estate Group are worried about 1.4 billion euros

2023-08-18 16:56:37

Working on the construction site

Many investors and buyers are concerned about the real estate projects of the Project Group.

(Photo: IMAGO/Frank Peter)

Berlin, Dusseldorf Peter K. had hoped for a cushion for old age when he put 300,000 euros into the Project Metropolen 20 real estate fund two years ago. From January 2028, six percent should flow back annually, he describes his situation. Instead of anticipation, K., who doesn’t want to read his full name in the newspaper, now lives in fear: “I hope that not everything is gone,” he says. “All in all, it’s not letting me sleep peacefully at the moment.”

K. is not alone with his troubles. Around 30,000 private investors have entrusted around 1.4 billion euros to around 20 funds of the Bavarian Project Immobilien Group (PI) from Nuremberg and Bamberg. The project developer wanted to build turnkey apartments and commercial properties. Several subsidiaries and the group’s holding company have been insolvent since last week.

The special feature compared to many other companies in the real estate industry: the group deliberately avoided bank loans. Instead, she collected the necessary capital through funds.

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