The German Property Crisis Is Claiming Its First Big Victims
Real estate investors are focused on flailing landlords and owners, but developers are the ones in most immediate danger of insolvency.
The Quelle building under redevelopment in Nuremberg, Germany, on Oct. 2.
Photographer: Ben Kilb/BloombergIn 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.
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.
Up Next
The German Property Crisis Is Claiming Its First Big Victims