(Bloomberg) – In July this year, Nuremberg’s mayor celebrated the final beam being placed atop the redeveloped Quelle building, a monumental 1950s symbol of postwar Germany’s economic revival. Revamped with offices, shops and homes, a big part of the giant complex was slated to open in 2024.
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In recent weeks, however, the site’s developer Gerch Group, which has €4 billion ($4.2 billion) of projects under construction, has filed for insolvency proceedings, along with one of its project companies linked to the development. The opening date’s now in doubt.
It’s yet another blow to a property market that’s reeling from the end of the cheap-money era, but it also shows who’s most vulnerable to the shakeout. While investor fears during the current real estate crisis have centered on landlords, the travails of Gerch and its ilk show that developers — the firms that own the building projects — are the ones in imminent danger.
“Project developers…
2023-10-04 23:00:03
Original from finance.yahoo.com
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