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A major real estate company in Zurich, Crowdhouse, is facing criticism and financial troubles. The company’s business model, which relied on low interest rates to acquire investment properties, has been disrupted. With interest rates rising, the company is struggling to generate the same level of returns for its investors. As a result, Crowdhouse has had to make significant layoffs, including its entire acquisition team.
In addition to these challenges, the company is now facing scrutiny over its accounting practices. It has been revealed that the company has been sending inaccurate invoices to tenants, resulting in significant discrepancies in the amount owed for heating and electricity. An external specialist has been brought in to rectify the situation, but the chaos in the company’s accounting department is described as “gigantic.”
Despite these issues, a spokesperson for Crowdhouse maintains that there have been no extraordinary layoffs and that the company’s business model remains unchanged. However, it is reported that Francisco Fernandez, a prominent investor and board member of Crowdhouse, has increased his stake in the company. The spokesperson declined to provide further information on Fernandez’s involvement.