“Projekt” Group, the German real estate conglomerate, has officially declared bankruptcy, as confirmed by the law firm “Schultze & Braun” overseeing the bankruptcy proceedings. Three out of the four companies comprising the group have filed for bankruptcy, with the holding company “Projekt Real Estate” expected to follow suit in the near future.
Official data has revealed that the bankruptcy is partially attributed to the significant rise in construction costs, which were notably impacted following the Ukraine conflict. The group was unable to pass on these additional costs to its clients.
The German real estate group “Projekt” announces its bankruptcy
According to the company’s official website, the number of projects under execution or in the planning phase across Germany reached 120 projects with an estimated investment cost of 3.2 billion euros by the end of last June.
Reports have also indicated that the sudden increase in real estate interest rates and rising construction costs have contributed to numerous bankruptcy cases within the sector.
Many construction companies have faced difficulty in selling residential units due to customer reluctance or their inability to afford the elevated prices.
It’s worth mentioning that the “Projekt” Group had previously affirmed in its promotions that it relied solely on private capital in its projects, highlighting that this approach provided the utmost security for both clients and investors.
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