Project update

Update from the originator:

"Dear investors,

We would like to give you the following update on the “Pazmanitengasse 14” project.

Planning:
A two-storey attic extension including the addition of loggias and balconies (in the inner courtyard and rear courtyard) was approved by the authorities in November 2022. Subsequently, a change of plan was submitted to convert a total of 21 units in the existing building into 14 commercial apartments (some units in the existing building are being combined due to their small size). This change of plan was approved in January 2024. The prerequisite for the implementation of the attic extension is the leasing out of three currently occupied apartments on the 3rd floor - courtyard side, as a ceiling lowering is required there in order to be able to build the 2nd attic. (Top 66+69 rented for a limited period until 08/26 and Top 62 rented for an indefinite period).

Utilization:
A teaser and a data room have already been created. The property was offered to prospective customers both directly and through several real estate agencies. Because the global sale did not meet with any response, several well-known real estate agents were commissioned to value all units, including the unfinished attic, as part of an individual sale. The results of the valuations of all commissioned real estate agents (EHL, ÖRAG, sREAL) clearly indicate that significantly higher utilization proceeds can be achieved through the individual sale. Consequently, in order to equalize the property, the re-measurement of the inventory, determination and approval of the construction consensus, preparation of a utility value report and drawing up of a condominium contract are commissioned. Subsequent sale of the approved unfinished attic to a project developer with the obligation to build the elevator and renovate the common areas. Ongoing efforts to vacate the property while simultaneously marketing the units that are already vacant and rented for a limited period. Gradual expansion of the individual sale to include fully rented units. Finally, package or individual sale of the remaining indefinitely rented units.

As soon as we make progress on retail sales, we will send you an update.

Kind regards,
Realtrade Real Estate Group"

Update from the originator: 

"Dear investors,

Unfortunately, we have to inform you that due to the current market situation, the Realtrade Group, parent company of the issuer SUWAR RT Immobilien KG, is currently unable to repay the loan on time.

The parent company, I & Co Realtrade Holding und Beteiligungs GmbH, has commissioned the auditing and tax consulting firm and restructuring expert, BDO Austria Holding Wirtschaftsprüfung GmbH, to define a restructuring strategy with the help of which further liquidity is to be provided by the financing banks.

After consultation with the legal representation of the Realtrade Group, we were provided with the following information:

A standstill agreement has been concluded at the level of the Realtrade group and at the level of the shareholders, with a standstill until May 31, 2024, subject to super senior financing from the banks and an owner's amount.  

The Realtrade Group is currently developing a comprehensive restructuring concept involving all creditors and ongoing negotiations are underway with the financial creditors involved. In particular, the now appointed Chief Restructuring Officer, DI Christoph Schäffer, with the participation of BDO, is currently in charge of finalizing an exploitation plan and medium to long-term liquidity planning in order to ensure the extent and time period to which solvent divestment options can be implemented.

We will inform you immediately about ongoing developments and continue to ask for your understanding.

Kind regards
Team Rendity"

Update from the originator: 

Due to the current market situation - in particular the slow sales of apartments - the Realtrade Group, parent company of the issuer SUWAR RT Immobilien KG, is currently unable to repay the loan on time and is requesting a deferment. 

The parent company, I & Co Realtrade Holding und Beteiligungs GmbH, has commissioned the auditing and tax consulting firm and restructuring expert, BDO Austria Holding Wirtschaftsprüfung GmbH, to define a restructuring strategy with the help of which further liquidity is to be provided by the financing banks.

The issuer is already in discussions with the banks and expects to be able to present a plan for the Pazmanitengasse project within the coming weeks.

Update from the originator: 

In August 2023, an application was submitted to the building authority for the previously announced conversion of 18 apartments into 14 apartments on the existing floors. This was done building on the previously approved submission.

Eight of the apartments have been combined into four larger apartment units, reducing the original number of 18 to 14 apartments. The decision on the approval of the rededication is still pending.

The start of construction of the project has not yet been determined due to the current economic uncertainties and will take place in the third quarter of 2024 at the earliest.

Update from the originator: 

The project is going according to plan. Certain flats are currently being rededicated as apartments. 

In summary, the following development steps have been completed:

Purchase of the property (share deal)

Obtaining the building permit

Rest of the procedure:

Refurbishment of old stock (apartments and common areas)

Implementation of the DG expansion

Update from the originator: The project is going according to plan. The architects are currently processing a request from MA37 for the submission of documents. At the same time, plans are being made for possible conversion into apartments. Two more units were returned to Realtrade. Construction is expected to start in the first quarter of 2023.

Update from the originator:

At the end of February, the submission to the MA37 building authority for the expansion of the attic takes place. Due to the Covid situation, the authority needs about 6 months to check the submission. A building permit is therefore expected in August 2022 and at the same time, it will be checked whether it is possible to convert the apartments. Some rentals were successfully carried out. The project is progressing according to plan and construction is expected to start in March 2023.