Next bankruptcy in the domestic real estate sector: After the mega disaster of the Signa Group, the Viennese developer Imfarr had to file for bankruptcy. The company has accumulated debts of 604 million euros. In the past, prominent politicians, ex-chancellor Werner Faymann and ex-minister Josef Ostermayer (both SPÖ), were on board as investors or managers.
Imfarr Beteiligungs GmbH has filed a petition for restructuring proceedings without its own administration at the Vienna Commercial Court. The company cites the current negative developments on the real estate market as reasons for the bankruptcy, which hit it “particularly hard”. In particular, the economic and geopolitical uncertainties have brought the demand for office space in Germany “to a complete standstill”.
The “unexpectedly rapid increase in interest rates” in turn allegedly significantly increased financing costs and caused demand for real estate to collapse. As a result, the company was unable to execute or complete projects within the planned scope and timeframe and was unable to complete sales transactions.
Faymann and Ostermayer were on board earlier
Prominent SPÖ politicians were previously involved in the real estate group, which belongs to the Farrokhnia family. Former Chancellor Werner Faymann was an investor in the company from 2019 to 2022. Former minister Josef Ostermayer held a management position from 2021 to 2023. Both made the “leap” in time.
Accumulated debts of 604 million euros
According to credit protectors, around 110 creditors and 18 employees are affected by the bankruptcy. In total, liabilities were built up for an amount of 604 million euros. The creditors must be able to write off 80 percent of this. The intended restructuring plan provides for a quota of 20 percent for the lenders, payable within two years.
The money for this is to come from the “proper use” of the existing real estate portfolio. According to the Imfarr website, the current office real estate projects include Nordbahnstraße 50 (“N50”) in Vienna, the MUC.ONE in Munich or the Cavallo in Düsseldorf. According to KSV1870, the now bankrupt Imfarr Beteiligungs GmbH owns shares in 44 companies.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
