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Meanwhile, a debt restructuring is underway. In addition to shareholder Baustoff + Metall GmbH, the buyers are investors Ronny Pecik and Stefan Schönauer. 6B47 announced on Wednesday that a comprehensive debt restructuring with the financing banks would allow financing of the major project until its planned completion in the first quarter of 2025.
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Althan Quartier is currently one of Vienna’s largest city-center construction sites. Hundreds of apartments, offices, shops and hotels were planned to be built on 2.4 hectares by the third quarter of 2024. The total project amount should be around 570 million euros according to the 2022 balance sheet. Recently, auditor Deloitte warned of the financial consequences of “significant extensions of construction time and construction cost overruns”.
“Key milestone in restructuring”
So far, the large-scale project has been financed by a domestic banking consortium with EUR 360 million until the end of 2024. Raiffeisen Bank International AG (RBI) is the lead consortium for the project. Other consortium partners include Oberbank, Raiffeisenlandesbanken Steiermark and Upper Austria as well as Volksbank Wien, Sparkasse OÖ, VKB and Hypo Vorarlberg.
Christian Mayer, member of the 6B47 board of directors, spoke on the radio about “an important milestone in the reorganization of 6B47 AG”. The project developer recently withdrew from the development of the area on Aikenstrasse in Vienna. The Porr construction company is continuing the project on its own.
6B47 expects to complete the project in the Althan Quartier above the Franz-Josefs-Bahnhof in Vienna’s Alsergrund and is looking for tenants for the approximately 260 apartments. Marketing is scheduled to begin in September. It is understood that half of the office space has already been rented out. The Althan project also includes the renovation of the headquarters building at Julius-Tandler-Platz.
Revitalization Project
The real estate project is a revitalization. By preserving the existing building structure to a large extent, the aim is to reduce climate-damaging carbon dioxide (CO2) as much as possible. According to previous documents from the City of Vienna’s Urban Development Commission, steel, concrete and other materials will be reused in the remodelled new building.
But 6B47 has seen disproportionate growth in the project due to rising interest rates and construction costs. Deloitte declined to issue a 2022 audit report because the auditors believe the company’s continued existence is no longer guaranteed. As Deloitte noted in its negative audit opinion, “The Althan Quartier project, the 6B47 Group’s largest project, resulted in significant extensions in construction time and construction cost overruns, which also had a negative impact on the 6B47 Group’s net assets, financial position and performance due to significantly higher interest rate levels.”
According to the commercial register, 6B47 posted a net loss of €6.6 million in 2022. As stated in the consolidated financial statements, the financial result was deep red at minus €35 million due to a “sharp increase in interest expenses on loan liabilities.”
Since 2020, the largest shareholder of 6B47 Real Estate Investors AG has been Baustoff + Metall GmbH, whose owner was entrepreneur Wolfgang Kristinus, who died in 2022. 6B47 was founded by former ÖBB boss Martin Huber and construction and real estate entrepreneur Erwin Krause. According to Wirtschaftscompass, both parties recently held a 20.9% stake.
This article was last updated on August 14, 2024 at 5:23 p.m.
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