Berlin Senate does not want to abandon construction projects
Despite the company's financial problems, the Berlin Senate intends to continue with plans for construction projects by the ailing Signa Group, such as at Hermannplatz in Neukölln. "We are monitoring developments at Signa very closely," said Martin Pallgen, spokesman for the Senate Department for Urban Development and Housing, on Thursday. "We have an urban development interest in the development of the various projects, on which many jobs also depend." Several media outlets had previously reported on this.
The struggling real estate group Signa, which was founded by Austrian real estate entrepreneur René Benko, has halted all construction projects in Berlin, according to a report in the Tagesspiegel. These include the Karstadt locations on Hermannplatz and in Wedding as well as the "Glance" project in Franklinstrasse (Charlottenburg). The "Tagesspiegel" newspaper referred to company circles in its report on Wednesday.
According to spokesperson Pallgen, the building authorities will not stop the plans for the development plan at Hermannplatz and the framework plan for the Kurfürstendamm/Rankestraße/Augsburger Straße area for reasons of urban development and to secure the department store locations. "Anyone who demands this is accepting that important projects for the development of Berlin's centers and numerous jobs are being put at risk."
Signa announced in Vienna on Wednesday that founder Benko was withdrawing from the management of the troubled group. Like many companies in the real estate sector, Signa is struggling with increased interest rates and higher material costs. Signa is building the 245-meter-high Elbtower in Hamburg, for example. The group also owns the department store group Galeria Karstadt Kaufhof, which has already been through two insolvency proceedings.
MPs call for a halt to projects such as Hermannplatz
The spokesperson for urban development for the Green parliamentary group, Julian Schwarze, called on X (formerly Twitter) for the Senate to stop the development plan procedures on Ku'damm and Hermannplatz. "The city must not make itself dependent on questionable business models." Left-wing MP Katalin Gennburg also called for this in the "Tagesspiegel". The spokesperson for the city development and building administration countered: "We are not developing any desired development plans for investors, but are determining the necessary uses at the respective locations."
In light of Signa's financial difficulties, some political figures have advocated for halting construction projects, such as those at Hermannplatz. However, the Berlin Senate remains committed to pushing forward with the development plan at Hermannplatz and the framework plan for the Kurfürstendamm/Rankestraße/Augsburger Straße area, citing the importance of these projects for urban development and job creation.
Source: www.dpa.com
