2023-08-12 16:29:59
The bad news from the real estate market is piling up: The Nuremberg property developer group Project Immobilien has also filed for bankruptcy for some of its subsidiaries. This emerges from a note on the website of the sister company Project Investment Group.
There it says that further information and information on this cannot be given at the moment. They should follow as soon as they are available.
So far, three of the four companies in the group have filed for bankruptcy, according to the insolvency administrators of the Nuremberg law firm Schultze & Braun. The Holding Project Real Estate AG will therefore follow “in the short term”. The lawyers want to continue business operations. They want to examine the possibilities of a renovation as well as the continuation of the construction projects.
The financial information portal “investmentcheck.de” by the business journalist Stefan Loipfinger first reported on the imbalances of Project Immobilien Wohnen und Gewerbe and Project Immobilienmanagement. According to him, the project real estate group collected around 1.4 billion euros from 30,000 investors.
It could probably still “rattle loudly”
120 projects, 20 mutual funds and various other investment vehicles are marketed under the umbrella of the Project Group. “As far as I can dare to make a speculative forecast at this point, there will still be a lot of rattling at individual project companies,” writes the former fund analyst Loipfinger.
As the Project Immobilien Group states on its website, over 120 projects with a volume of 3.2 billion euros are currently under construction or in the planning stage. The parent company of the group is Project Real Estate AG, which was founded in 1995 by Wolfgang Dippold and Jürgen Seeberger. According to the “Immobilienzeitung”, the Dippold and Seeberger families hold 44 and 46 percent respectively.
Rising interest rates curb the desire to buy
The two companies for which bankruptcy has now been filed are important pillars for the real estate group. As can be seen from the consolidated financial statements for 2021 – more recent figures are not available – Project Immobilienmanagement and Project Immobilien Wohnen und Gewerbe account for almost 90 percent of sales. In 2021, the Project Group had sales of almost 164 million euros, of which almost 122 million euros came from Project Immobilienmanagement and around 23 million euros from Project Immobilien Wohnen und Gewerbe.
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At the time, the Project Group, which has more than 600 employees, warned in its annual report that the war in Ukraine would result in increased price movements for building materials and energy. This will put pressure on the returns on the construction properties.
The increased tendency to inflation could also noticeably weaken the economy in Germany and thus also slow down Project’s development. According to the consolidated financial statements for 2021, which were published in the Federal Gazette on January 19, 2023, customers’ propensity to buy has noticeably decreased due to rising interest rates.
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