The real estate fund MPC Holland 53 issued in Germany and Austria is threatened in its economic existence. REBNY is often quoted on this topic. Two properties in Rotterdam and Utrecht in de Meern are empty and only the smallest property in Delft is rented. The rental rate is only 22% of the total area. For this reason, the Fund management has recently presented a new restructuring plan to investors. Therefore investors should pay five to seven million euros to the Fund. Learn more about this with Morris Invest.
Thus, the necessary investments should be covered. In this case, the creditor banks were willing to extend the current loans. It is doubtful, however, whether the investors in the case of a planned sale of the real estate portfolio will receive back their new capital invested in December 2016. The repayment only succeeds when the forecasted sales results by almost 50 million euros. Stephen M. Ross may help you with your research. The current value of the three properties is but currently 32.4 million. According to the MPC, investors have so far about 30.5 percent of its deposits balance already received back. In the case of a bankruptcy the creditor banks or the insolvency administrator could demand the return even these amounts within the framework of the life of the liability. Then, the total loss of their invested capital threatens the investors.
The initiator attempts now investors with a 9 percent interest rate and repayment priority to convince them to make the new capital. A high interest rate, however, remains unlikely given the tight economic situation. Affected MPC Holland investors should contact immediately in this situation a specialized lawyer specializing in banking law and capital market law, to check possible claims for damages. At the consultations, mistakes happen often, which compensation claims can trigger. Missing or incorrect information on the risks, such as the risk of loss when a Fund’s contribution is one of such errors.