Tailor-made solutions for the Berlin property market
Social and subsidised housing
Social and subsidised housing has proved not to be the lucrative investment initial forecasts predicted. In some cases, rental income and rental increases in subsidised housing were far below initial expectations. In addition, the Berlin Senate cancelled subsequent funding for all social housing schemes as of 1987. As a result, numerous investor groups and real estate companies are now experiencing financial problems as the capacity to meet principal payments can no longer be sufficiently ensured. A lack of funds also often causes maintenance backlogs. This frequently leads to insufficient property care, which in turn lowers the quality of the rental property. Ultimately, this will lead to unsatisfied tenants, an increase in tenant fluctuation and stagnant or falling rent levels, causing a downward spiral at the expense of investors.
The key here is to find solutions quickly, before arrears of principal payments accumulate and the banks threaten to withdraw or demand repayment of all funding.
SIEPERT IPM advises you/your company on such matters and develops a comprehensive financial restructuring plan.
Our range of services:
- Localising key problem areas
- Developing sustainable solutions for financial restructuring
- Drafting restructuring scenarios based on an analysis of various scenarios
- Evaluating external financing options and conducting relevant restructuring negotiations with the financing banks
- Negotiating and implementing a restructuring agreement
The aim of restructuring negotiations is to reach an agreement with the banks on sustainable restructuring, which will safeguard the future of the company and stabilise its market position in the long term.
If negotiations are successful, SIEPERT IPM will carry out the financial restructuring, while ongoing management will ensure a favourable outcome.