Deutsche Invest Immobilien, a German housing developer-investor, announced on Thursday that it has filed for insolvency proceedings for itself and its operating subsidiaries.
In a statement, the firm's CEO Frank Wojtalewicz said that 'a combination of sharply increased construction costs, political planning uncertainties regarding funding, a persistently high interest rate environment and a collapsed transaction market have, on the one hand, led to a sharp increase in costs and increased planning effort and, on the other hand, brought over a postponement of the required sales and income.'
The firm has been in discussions with shareholders and financing partners over the past few months to secure new funding but negotiations although promising, could not be 'concluded successfully'.
D.i.i.'s business, which manages real estate worth more than €4 bn, will continue after the insolvency application and all of the D.i.i. managed assets will continue to be looked after and managed, according to the statement.
‘The d.i.i. business model with the focus on energy-efficient renovation and the creation of living space through new construction and corresponding services related to residential property are still absolutely future-proof. Unfortunately, we have run out of stamina to overcome the current reluctance of investors and buyers,' added Wojtalewicz.
