Companies of the Project Immobiliengruppe are insolvent. Buyers of the properties have already made substantial down payments in some cases and are unsettled given the difficult situation.
Many construction projects are not yet completed, but companies of the Project Immobiliengruppe have filed for insolvency. Buyers of the properties, who in part have already made large down payments, are wondering what will happen next. Will the construction project still be completed and what about their already invested money? The law firm MTR Legal advises private and commercial investors in real estate law and illustrates the legal options for buyers affected by the Project insolvency.
The Project Group builds on two corporate pillars: The Project Immobilien Gruppe is responsible for the planning, support, and sales of real estate projects. Here, the Nuremberg District Court has initiated preliminary insolvency proceedings over the holding company Project Real Estate AG as well as the companies Project Immobilien Projektentwicklungs GmbH, Project Immobilien Management GmbH, and Project Immobilien Wohnen und Gewerbe GmbH.
The situation is complicated by the fact that the Project Immobilien Gruppe is not the owner of the properties. This is the Project Investment Gruppe, the second corporate pillar. Only Project Vermittlungs GmbH has filed for insolvency so far.
The Project Investment Gruppe has launched funds through which each construction project was financed. The fund companies have not been affected by insolvencies so far, but have stopped non-profit-related payouts to investors, reports the Handelsblatt on 22.08.2023.
As the preliminary insolvency administrator of the holding company Project Real Estate and the operational company Project Immobilien Management Immobilien GmbH has reported, a solution is being sought with the fund companies and an examination is being conducted on whether and how the necessary financial means for the continuation of the projects can be raised. For each individual construction project, it is necessary to determine relevant key data such as construction status, billing status, outstanding liabilities, and future financial requirements. Currently, the Project Immobilien Gruppe is managing around 118 projects, including residential buildings with approximately 1,850 apartments under construction. This also means that the examination is time-consuming and it may take more time before buyers have more clarity.
Buyers of properties can already seek legal advice to be prepared for further developments.
At MTR Legal, experienced lawyers in real estate law advise.
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