Wienwert trial focuses on Getreidemarkt 10 property deal

The trial regarding the bankrupt real estate group Wienwert continued at the Vienna Criminal Court, focusing on a property deal involving Getreidemarkt 10 in Vienna's city center.

Main defendant and former Wienwert CEO Stefan Gruze defended the sale of the property to co-defendant entrepreneur Klemens Hallmann. The Economic and Corruption Prosecutor's Office (WKStA) alleges that Gruze sold the property below its appraised value of nearly 20 million euros for 18.7 million euros. Prosecutors claim the sale was conducted under extreme time pressure to finance a bond liability for the holding company through a “hole-after-hole” method. They further allege that Gruze, acting as managing director of the Wienwert subsidiary, provided part of the proceeds as an insufficiently secured loan to the already insolvent WW Holding AG.

Klemens Hallmann has denied the allegations, arguing that he merely took advantage of Wienwert's economic distress. Hallmann contends that while he purchased the Getreidemarkt property, he simultaneously sold a property in Tulln to Wienwert at a significantly higher value, which allowed him to dictate unfavorable contract terms. The WKStA estimates that the deal caused creditors approximately 4 million euros in damages. Hallmann is expected to testify at the next hearing on Monday.