Real estate magnate Hallmann under intense scrutiny following full examination
In a recent announcement, the Hallmann Holding has revealed its plans to realign its real estate business, following the insolvency of its construction company, SUBA AG, based in Vienna. The insolvency proceedings for SUBA AG were opened by the Vienna Commercial Court earlier this year.
The insolvency of SUBA AG, a subsidiary of the Hallmann Group, has led to the halt of several ongoing projects, including the planned construction of the Plus Energy Quarter 21 at Pilzgasse 33. As of August 2025, the current status of these projects, particularly the Plus Energy Quarter 21, remains unclear from available sources. For the most accurate and up-to-date details, checking Austrian company registries, official insolvency courts, or Vienna city planning updates directly would be necessary.
The Hallmann Group, in its effort to navigate this challenging period, has stated its intention to refrain from using investor capital and special financing forms. The focus will shift towards promoting the area of existing properties, reducing the development of new projects, and focusing more on logistics companies, apartment hotels, and student housing. The group also aims to reduce the area of shopping and retail.
The insolvency of SUBA AG and the subsequent difficulties encountered in the business with short-term loans and quickly resold objects have been attributed to the rapid rise in interest rates. In 2022, the group paid over 17 million euros in interest, compared to around 12 million euros in 2021. Assuming the group has not hedged, around 35 million euros in interest would have to be paid in 2023 based on the financial debts of 2022 and an interest rate of 5%.
The debts of SUBA AG amount to around 226 million euros, while the assets are said to be around 8.6 million euros. Uncertainty continues to grow after the collapse of SUBA AG, with creditors expressing concerns about their money and hoping that the projects will still be built.
As the situation unfolds, the Hallmann Group has announced that it will provide detailed answers about the insolvency of SUBA AG at a later date. The 2023 group financial statements are expected to be published soon, offering more insights into the group's current financial situation.
The collapse of SUBA AG and the subsequent realignment of the Hallmann Group's real estate business underscores the challenges faced by the real estate industry in the current economic climate, particularly in the face of rising interest rates and uncertain market conditions.
- In response to the insolvency of SUBA AG, the Hallmann Group has decided to focus more on logistics companies, apartment hotels, and student housing, while reducing the development of new projects and the area of shopping and retail, indicating a repositioning of their real estate business.
- The rapid rise in interest rates has been attributed to the insolvency of SUBA AG and the subsequent difficulties encountered in the business, resulting in a significant increase in interest payments for the Hallmann Group.
- As the Hallmann Group navigates through this challenging period, they have stated their intention to refrain from using investor capital and special financing forms, with a focus on promoting the area of existing properties instead.
