Commerce in merchandise. - Central Group Takes Over KaDeWe Group's Commercial Activities
Luxury department stores KaDeWe in Berlin, Oberpollinger in Munich, and Alsterhaus in Hamburg are set to be sold to Thailand's Central Group, as reported by the German Press Agency. The deal was supposedly signed on a Friday, although the specific purchase price hasn't been disclosed yet.
However, the sale isn't finalized as there are still some antitrust matters to be settled. Meanwhile, Central is in negotiations with the landlords of the buildings in Munich and Hamburg regarding rental terms. The building of KaDeWe in Berlin, owned by Central since April (which cost a billion Euros as per Senate statements), already had a 50.1% stake held by Central prior to the complete acquisition of the store's operations. The remaining 49.9% was owned by Signa corporate network, a broken network belonging to Austrian investor René Benko. The group filed for insolvency in self-administration in January. Nevertheless, the day-to-day operations at the stores continue as usual.
The Central Group, owned by Thailand's Chirathivat family (one of the wealthiest families there), was valued at $12.4 billion ($11.4 billion Euros) by Forbes in 2023. This conglomerate, headquartered in Bangkok, operates various businesses, including supermarkets, retail chains, hotels, and restaurants. Their involvement with German department stores isn't their only foreign investment; they also have stakes in La Rinascente (Italy), Selfridges (UK), and Globus (Switzerland).
KaDeWe, opened in 1907 and famously known as "Department Store of the West," symbolizes wealth and consumption in post-war Berlin. The iconic structure houses 60,000 square meters of shopping space smack in the city's heart, attracting fans of luxury goods and tourists in droves.
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The sale of KaDeWe, Oberpollinger, and Alsterhaus to Central Group will significantly impact the retail trade in Germany. Central Group, known for its operations in Bavaria, is set to gain control of KaDeWe's business operations, contributing to its existing portfolio of luxury department stores worldwide. The Thai conglomerate's finances are robust, with a valuation of $12.4 billion ($11.4 billion Euros) in 2023, as reported by Forbes.
German business operations are not the only foreign investments for Central Group; they also have stakes in prominent retail chains in Italy, the UK, and Switzerland. The acquisition of KaDeWe's commercial activities is expected to further enhance Central Group's presence in the European retail market. Despite the pending antitrust matters, the day-to-day operations at KaDeWe, Oberpollinger, and Alsterhaus continue as usual, offering a vast range of merchandise to locals and tourists alike.
Negotiations regarding rental terms for buildings in Munich and Hamburg are essential for Central Group to complete the acquisition of KaDeWe Group's commercial activities. The landlord-tenant discussions will impact the future of these iconic luxury department stores in Germany. With Central Group's involvement, Munich's KaDeWe and Hamburg's Alsterhaus will join the renowned KaDeWe department store in Berlin, contributing to the group's strategic expansion across Germany.
