(Bloomberg) -- Austrian real estate developer Imfarr Beteiligungs GmbH filed for insolvency in a Vienna court on Tuesday, citing higher financing costs and a drop in demand for office spaces.
Imfarr, which invests in commercial properties in Germany and Austria, said it failed to complete construction projects and sales transactions after the “unexpectedly rapid rise in interest rates,” according to a statement from Austrian creditor’s association KSV1870. “Demand for office real estate in Germany came to a complete standstill,” the filing said.
The Vienna-based family office, which owns several large office properties including Frankfurt’s Silver Tower, was founded by the son of former Strabag AG executive Nematollah Farrokhnia in 2007. At one point, the office held a stake in troubled German landlord Adler Group SA through a company it jointly owned with an investment vehicle controlled by real estate mogul Cevdet Caner.
Imfarr has around €604 million ($656 million) in liabilities, according to a separate filing published Monday, and offers to repay the legal minimum of 20% to creditors over the course of two years under a restructuring plan.
--With assistance from Libby Cherry.
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