Real estate - Authority: Signa proceedings without acute consequences for Elbtower
From the City of Hamburg 's point of view, Signa Prime Selection AG's application for debtor-in-possession restructuring proceedings has no acute consequences for the Elbtower. However, a spokesperson for the city development authority also told Deutsche Presse-Agentur on Thursday: "Even if this has no direct impact on the existing contractual relationship between the City of Hamburg and the purchasing company, we are monitoring the situation very closely so that the City of Hamburg can take further steps if necessary."
According to the authority, Signa Prime Selection AG, led by Austrian investor René Benko, is the indirect parent company of the purchasing company of the Elbtower property, Hamburg Elbtower Immobilien GmbH & Co KG. It indirectly holds 75 percent of the shares. On Thursday, Signa Prime Selection AG applied to the Vienna Commercial Court for debtor-in-possession restructuring proceedings. "The aim is the orderly continuation of business operations within the framework of self-administration and the sustainable restructuring of the company," the company announced.
From the point of view of the Left Party in the Hamburg Parliament, the Elbtower is now under fire. "Benko's empire is collapsing, now it's the Elbtower's turn," said Heike Sudmann, construction expert for the left-wing parliamentary group. The supposed security provided by Signa Prime Selection AG was not worth the paper of the purchase agreement. The city cannot now exercise its repurchase right, "as it only applies in the event of insolvency within one year of completion in accordance with section 19.1.3". And the Elbtower is still a long way from completion.
The Elbtower construction site in the east of HafenCity has been at a standstill since October. According to the construction company commissioned, Adolf Lupp from Nidda in Hesse, Signa, which has run into difficulties, has not paid invoices. Signa itself did not initially comment on this when asked. The Elbtower is to be 245 meters high and will be the third tallest building in Germany, housing offices, stores, galleries, restaurants and a viewing platform on the 55th floor. So far, a height of around 100 meters has been reached. Completion was previously planned for 2025, with total costs estimated at around 950 million euros.
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- Amidst the financial struggles of Signa Prime Selection AG, led by Austrian investor Rene Benko, the German Press Agency reported that Vienna Commercial Court received an application for debtor-in-possession restructuring proceedings.
- The Elbtower, set to become the third tallest building in Germany, with a height of around 100 meters and estimated costs of 950 million euros, is currently at a standstill due to unpaid invoices from Signa.
- The President of the Mother City Hamburg's Left Party, Heike Sudmann, criticized the situation by saying, "Benko's empire is collapsing, now it's the Elbtower's turn."
- The city development authority in Germany mentioned that Signa Prime Selection AG holds a 75% stake in Hamburg Elbtower Immobilien GmbH & Co KG, the purchasing company of the Elbtower property.
- In Vienna, the move aimed to ensure the orderly continuation of business operations within self-administration while restructuring the company, according to the announcement.
- Renowned construction company Adolf Lupp from Hesse, who is responsible for the Elbtower construction site, stated that Signa had not been paying invoices, causing the project to halt since October.
Source: www.stern.de
