Real Estate Sale Large Losses

High risks in the Fund have carried out specialist solicitors to assist investors in the enforcement of claims for damages which is applied Hanseatic Immobilienfonds Austria III GmbH & co. KG in 2002 by the underwriter of HCI for investors to the fiasco. Now at least the return of loans to be enabled by a sale of the real estate, operated by the Fund management. Otherwise threatened due to incipient further vacancy the insolvency of the Fund and the recovery of the distributions obtained in the last 9 years of just 30% of the capital invested. For investors, this means a loss of close to 70%. High risks are carried out are closed-end real estate funds, such as the Federal Court of Justice in its judgment to AZ. III ZR 249/09 formulated corporate investments that the risk as such, that capital at least for a part can be lost.

This risk depends on its extent, inter alia by the equity / debt ratio, the evolution of real estate prices and Collecting and valuations indicated down. Already little, it fits that of HCI was already advertised Fund Austria III on the brochure cover as “eternal investment”. Claims for damages due to incorrect advice many investors of the Fund, tell us that they were not informed of their advisers in the run-up to the participation in the Fund about the risks of the Fund. Some points always appear: loss of value of the real estate: the value of commercial real estate is subject to, as well as the rent for commercial real estate, economic fluctuations. Accordingly, the real estate fund is not a stable system. Terminal rental risk: Depending on the economic situation on the real estate site and the attractiveness of a location changing difficulties can arise, to re-rent freed space. Here are any vacancies to make expenses the tenant search and investment in the adaptation of the rental space to the requirements of new tenants.