Image: Colourbox.de
The Gerchgroup has filed for bankruptcy in self-administration for several holding companies at the Düsseldorf district court, reported the “Wirtschaftswoche” on Wednesday. The court granted the application.
Previously, companies such as Euroboden in Munich, Nuremberg-based Project Immobilien and the Düsseldorf real estate company Centrum and Development Partner had filed for bankruptcy. The construction and real estate industry is suffering from increased construction prices in combination with the sharp rise in interest rates.
The Association for Home Ownership called on Wednesday for buyers to be protected in the event of the insolvency of a construction company. In other European countries such as France or the Netherlands, such cases have “long since been settled”. Binding protection is “overdue” in Germany.
Homeownership suggested two options: either the property developer waives down payments from the buyer until the property is ready for occupancy and handover, or he secures the down payments, for example with insurance. According to the association, such protection should at least be mandatory for property development contracts where the buyers are consumers.
According to “Wirtschaftswoche”, Gerch is a project developer that operates throughout Germany and specializes in the construction of office properties and districts in major German cities. According to information on the company’s website, the nine current project developments have a total volume of around four billion euros. Current projects include the conversion of a former railway area in Augsburg, a residential and administrative center in Nuremberg and the Laurenz Carré, a building area in downtown Cologne.
The background to the bankruptcy application initially remained open. The company has so far left an inquiry by “Wirtschaftswoche” about the financial situation and possible restructuring plans unanswered.
Source: Nachrichten
