Major Berlin Real Estate Firm Ziegert Files for Insolvency After Four Decades

After nearly 40 years of operation, the prominent Berlin-based real estate company Ziegert Group has filed for insolvency, citing persistently challenging market conditions. The insolvency affects two principal subsidiaries: Ziegert GmbH and Incept GmbH. The announcement was made on Monday, marking a significant turn of events for a company renowned for selling thousands of private residential properties.

The insolvency application was submitted to the Charlottenburg District Court in Berlin. Friedemann Schade, a Berlin-based attorney, has been appointed as the provisional insolvency administrator.

According to the company, the primary reasons behind the insolvency are enduring and deteriorating conditions within the residential property market. Specifically, the company points to a combination of high interest rates, rising construction costs, and declining buyer sentiment. Recent geopolitical tensions have further exacerbated these factors, contributing to heightened uncertainty and negatively impacting the overall real estate environment.

Established nearly four decades ago, Ziegert has played a significant role in Berlin’s property market, extending its reach also to Leipzig. Over the years, the firm has successfully sold more than 20,000 residential properties to private buyers, securing its reputation as a significant market player.

The company is managed by its founder and shareholder Nikolaus Ziegert, alongside Managing Director Kyrill Radev. Its advisory board notably includes high-profile figures such as former Federal Interior Minister Otto Schily (SPD) and former Chairman of Dresdner Bank Bernd Fahrholz. Despite inquiries from local media, the company declined to specify the exact number of employees directly impacted by the insolvencies of the two subsidiaries. However, based on the company’s public information on LinkedIn, approximately 180 employees are estimated to be affected.

Friedemann Schade, the provisional insolvency administrator, commented on the current situation, stating: “Together with my team, I am currently assessing the structure of the corporate group, its subsidiaries, ongoing projects, and their financial situations.” He confirmed that operations of the Ziegert Group would continue under his financial supervision for the time being.

During this provisional insolvency period, Nikolaus Ziegert and Kyrill Radev will retain their roles and continue managing the day-to-day operations. However, if and when the insolvency proceedings transition into the main procedure, exclusive decision-making authority will transfer to the appointed insolvency administrator.