Gamma Capital Management must raise ISK 1 billion ($8.1m/€7.3) in order to continue the construction of 277 apartments in the capital area that were financed by its Gamma: Novus fund, Vísir reports. Gamma’s two real estate funds Novus and Anglia plummeted in value last week, losing millions for their investors, which include several Icelandic pension funds.
Novus operated the real estate company Upphaf, which has built hundreds of apartments in the Reykjavík capital area in recent years. Construction projects in Hafnarfjörður and Kópavogur’s Kársnes neighbourhood are among those that are suspended due to the fund’s devaluation.
Gamma’s executives have presented three options for preventing the company’s bankruptcy: that creditors provide the capital, that a loan is granted by creditors and others, or that new parties come to the table. According to Vísir’s sources, it should come to light this week whether the fundraising succeeds.