Project update

Update from the originator: 

The originator would like to provide you with information about the current status of the Colerusgasse 21 project.

To their regret, sales continue to be sluggish, which is due on the one hand to the increased interest rates in the euro area and to the KIM regulation in force in Austria. This has made the criteria for granting real estate loans massively more difficult and prevents many potential buyers from getting a real estate loan from a bank. As a result, some interested parties unfortunately had to turn us down because financing through the bank was not possible.

At the end of 2023, two apartments were sold. In January 2024 the originator managed to conclude a purchase contract for another apartment. As of the end of February 2024, a total of 17 apartments and 10 garage parking spaces were sold.

There are also inquiries for the purchase of two apartments, for which financing is currently being examined. The originator is confident that these exams will go well and that further qualifications can be achieved.

It is generally expected that interest rates in the euro area will fall in the next few months, which is expected to increase demand. The general assessment of market developments for the coming months can therefore be viewed as positive. After the invested funds are repatriated due to the sales, the repayment can only take place at a later date.

The originator thanks for the trust and the patience necessary in the current market situation.

Update from the originator: 

The originator has currently successfully sold 45% of the residential units to potential buyers. They are still actively looking for suitable buyers for the remaining units.

Unfortunately, the sales process for many of the apartments has slowed down and in some cases has come to a standstill. These challenges are due to two main factors: the recent increase in interest rates by the European Central Bank and the introduction of the KIM Regulation. 

These unforeseen developments have meant that the originator has had to rethink and adapt our sales strategies. Their team is working hard to find alternative ways to advance the sale process and return the borrowed capital. This includes implementing various sales strategies to meet current market needs.

In parallel, the originator is working on increasing financing to repay the invested capital and ensure that the project continues to progress successfully.

A report underlining the need for this financing expansion was prepared and made available to the bank. The final decision now lies with the bank's risk management.

The originator would like to emphasize that they are aware of the situation and are working hard to find the best possible solution for all investors. Patience is crucial at this stage.

Update from the originator: 

Since the sale of the individual residential units has been delayed since the introduction of the KIM Regulation (Credit Institutions Real Estate Financing Measures Regulation), the issuer is working on refinancing.

Successful discussions have already been held with the financing bank about this. After internal consultation with risk management, it was suggested that a current market value report be drawn up; based on this, further testing could be carried out. This has already been arranged and the report is expected in the course of next week.

The issuer expects that a decision on the requested refinancing request will then be made quickly.

Update from the originator: 

Construction work on the “Colerusgasse 21” project was completed in March 2023. The 12 buyers were therefore able to move into the apartment. Two more units were successfully sold over the summer. Reservations are currently available for 3 additional units, but interested parties are currently waiting for the financing commitment from the banks. Since the introduction of the KIM Ordinance (Credit Institutions Real Estate Financing Measures Ordinance), purchase transactions have been delayed or financing has not been completed, so that this has a negative impact on sales progress.

Since the money invested is being repaid due to the sales of the apartments, the originally planned repayment date cannot unfortunately be met. The contractually agreed interest as well as the statutory default interest of 4.0 percent will accrue until the actual repayment date.

The originator's broker team continues to work intensively on selling the residential units that are still for sale so that this project can then be completed. In addition, the originator is also working on refinancing the project in order to be able to serve and cover investors.

Update from the originator: The roof leveling and the shell construction were carried out according to the plan of the construction company. The interior is currently being fitted out and the windows are installed. The borrower was already able to sell 7 residential units before completion in Q4/2022. The construction site is running according to plan and the borrower is not expecting any deviations at the moment.

Update from the originator: 

The completion of the shell in the area of ​​the basement and the underground car park was carried out according to plan. The ground floor area was completed in early December.
The electrician has started work.
The first residential unit was sold. Some have been reserved.

Update from the originator:

The developer is currently working on the basement and the underground car park. The first apartments are currently being reserved for a few prospective buyers.

New photos have been added to the photos section.

Update from the originator:

The demolition of the old stock has just been completed.
Preparations for securing the excavation are currently underway.
The start of the piling work for securing the excavation is planned for the end of June.

New photos can be found in the documents section.

Update from the originator:

The groundbreaking for the Colerusgasse 21 project has already taken place. The start of construction was actually planned for June 2021 and took place early in mid-May. The construction is carried out by the company HABAU based in Perg.

Sales have also already started and reservations are now possible via the project website colerusgasse21.at, where the project is presented in more detail for those interested in buying. REALTA Immobilien is exclusively responsible for sales.

The project is progressing according to plan and the originator looks forward to keeping you updated.