Hallmann, the Immo-Löwe, remains unresponsive to impending danger

Klemens Hallmann's Real Estate Empire in Crisis: High Interest Rates and a Crashing Market Put the Future of Hallmann Group on the Line

It looks like millionaire Klemens Hallmann's vision for 2025 has hit a major roadblock. The once-promising Hallmann Group, with its subsidiary Süba AG at the helm, is now bankrupt, and numerous construction sites stand idle as green fields.

The Hallmann Holding claims they're free of responsibility, as they removed Süba from the corporate accounts since 2023 balance sheets were not presented. They also state that the Süba's board operates independently, with no liability for the company's demise. However, it's worth noting that Hallmann is the Süba's largest creditor [1]. With assets valued at a mere 8.6 million euros and staggering debts of 226 million euros, it seems creditor offers of a 20% payback are the least of their worries [2].

But the trouble doesn't end there for Mr. Hallmann. The real estate market has plummeted, as evidenced by the dip in transactions from 108,000 in 2022 to approximately 69,500 in 2024 [4]. Coinciding with this decline, the European Central Bank has taken a hard hit on developers like Hallmann with their increased interest rates since 2022. While rates are now on a downward trend, the damage was still devastating in 2023 and 2024 [4].

With loans maturing up to five years, variable interest rates, and a struggling market, Hallmann is finding it difficult to sell his properties and refinance loans [4]. According to financial insider Gerald Zmuegg, it's the banks that now hold significant sway over Hallmann's future, as the Hallmann Group is required to repay approximately 554 million euros in loans between 2024 and 2027 [4]. Given that a large portion of these loans likely pertained to the Süba, the question arises as to whether banks that have suffered losses due to the insolvency will continue to finance future Hallmann projects. If a bank is forced to write off loans, that's typically a no-go, as Zmuegg points out [4].

As a result of these mounting challenges, it seems that Klemens Hallmann is rethinking his real estate strategy:

He's vowing no more new construction projects due to the complications and regulations involved.
Instead, he's focusing on renovating existing properties, opting for a more sustainable approach compared to new buildings.
Logistics, apartment hotels, and student housing are the new priorities, while shopping centers are being left behind, in clear acknowledgment of the present crisis [4].

Hallmann remains optimistic, believing that the transformation of existing buildings presents a great opportunity. However, whether this new strategy will be enough to save the empire is still uncertain [4].

References:

[1] Hallmann Group's subsidiary Süba AG files for insolvency, faces crippling debt (oxfordbusinessreporter.com, 2025)

[2] Süba AG: What are the company's assets and debts? (ksv1870.at, 2025)

[3] Threats and Opportunities: Hallmann Group's Response to the Real Estate Market Crisis (tophost.at, 2025)

[4] High Interest Rates and a Crashing Market Force Hallmann Group to Rethink Its Real Estate Strategy (oe24.at, 2025)

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Other industries may find potential investment opportunities in Hallmann Group's distressed real estate assets.

Financing for future Hallmann real estate projects may be difficult to secure, considering the banks' significant influence due to outstanding loans and potential losses from the Süba's insolvency.