Real Estate Mogul Hallmann Under Investigation in Detail
The Hallmann Holding, a prominent Austrian real estate company, has announced a significant restructuring of its business. The company aims to reduce the area dedicated to shopping and retail, and instead focus on logistics companies, aparthotels, and student housing.
This realignment comes in the midst of growing uncertainty in Vienna's real estate market, following the insolvency of construction company SUBA AG. Owned by Klemens Hallmann, SUBA AG's insolvency has led to delays and halts in various construction projects, with the Plus Energy Quarter 21, a planned project at Pilzgasse 33 in the 21st district, being one such example.
The insolvency proceeding was opened by the Vienna Commercial Court, with debts estimated at around 226 million euros and assets at approximately 8.6 million euros. Creditors are facing delayed or reduced repayments, and there is hope that the projects will still be completed, possibly through acquisition or restructuring offers by other firms.
The Hallmann Holding has stated that it wants to do without investor capital and special financing forms, and plans to reduce the development of new projects, focusing instead on the area of existing properties. Detailed answers about the restructuring of the real estate business will be provided later by the Hallmann Holding.
In 2023, the Hallmann Group is expected to pay around 35 million euros in interest, based on financial debts of 2022 and an interest rate of 5%. This represents an increase compared to the interest payments of 2022.
The rapid rise in interest rates has been a challenge for the Hallmann Group, as it has for many businesses. The difficulties in the business with short-term loans and quickly resold objects, as evidenced by the SUBA insolvency, are a consequence of the interest rate increases.
The insolvency of SUBA AG has caused concern among creditors, who hope that the projects will still be completed. For the most accurate and up-to-date information, consulting specialized local Austrian business news, insolvency court filings, or direct communications from SUBA AG or Hallmann Holding would be necessary.
In the meantime, the empty plots of land that were intended for luxury residential buildings next year now stand idle, a stark reminder of the challenges facing Vienna's real estate market. The Hallmann Holding's restructuring and the ongoing insolvency proceedings of SUBA AG will undoubtedly shape the future of Vienna's real estate landscape.
- The Hallmann Holding, in an attempt to navigate the challenging Vienna real estate market post-SUBA AG insolvency, plans to redirect its investing efforts towards logistics companies, aparthotels, and student housing, as a means of financial support, digging deeper into the real estate sector.
- In light of raising concerns among creditors and uncertainties in the industry, Hallmann Holding has declared its intention to avoid investor capital and special financing forms, instead focusing on the management of existing properties.
- As the Hallman Group faces increasing interest costs to the tune of around 35 million euros in 2023, the repercussions of high finance rates are being felt acutely within the sphere of business and real-estate investing.
