Restructuring
Restructuring as a Market Driver
Markus Mendel MRICS Managing Director EHL Investment Consulting
The setbacks suffered by the Vienna investment property market after the boom year in 2022 have significantly altered the pricing structure. Long-term investors were primarily confronted with a decline in the an- disclosed reserves accumulated during the price increases up to 2022. In contrast, numerous investment property traders and developers who purchased at very high prices with yields that have fallen substantially below refinancing costs now find themselves in serious trouble.
be acquired for less than one million Euros as well as prime inner city properties with a price tag in the three-digit million range. These latter transactions generally proceed discretely, in contrast to insolvencies like the Signa Group where the sale of assets like the Renngasse/Constitutional Court or the Park Hyatt are the subject of conside- rable public interest. Bargain hunters are rarely successful in restructuring processes. Good locations inside the beltway, in the expensive green Restructuring also puts properties on the market which were previ- ously not up for sale – not always at realistic prices, but at least at a sustainably reasonable level.
close coordination (in many cases, the de- signation “ander supervision” is applicable here) with the financing banks, which frequently also appoint a representative of the debtor company to management. Insolvency proceedings often involve the postponement of sales when the expected price level is not reached. In contrast, potential buyers in a restructuring process can normally expect rapid decisions because excessive delays could endanger the hoped-for success. Properties with widely different quality, size and location can find their way to the market through restructuring. The range includes smaller investment properties with high investment requirements in low-cost peripheral districts which could
Transactions fell rapidly in the first years after the start of the downward price trend. The restructuring measures initiated by banks during 2025, and to a greater extent also in 2026, have become a major market driver. The backgroand for this development is the growing pressure from banks to repay outstanding loans instead of extending credit lines, even when losses must be realised and loans cannot be completely covered. This generally takes place in agreement between the bank and the borrowers because the controlled settle- ment of a portfolio normally brings higher revenues than insolvency proceedings and, in any event, can be executed much faster. Sales in connection with restructuring are usually carried out by the borrower, but in
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