Real estate - ECE CEO: Consequences of the Signa crisis remain manageable
The head of the Hamburg-based real estate group and shopping center operator ECE, Alexander Otto, does not see any serious effects of the Signa crisis for his sector. "The mood in the industry is already very bad, and it will certainly not improve as a result of Signa's problems," Otto told Wirtschaftswoche. But the real estate sector is very fragmented. "Even Signa does not have a particularly high market share. I therefore assume that the consequences will remain manageable," said Otto.
Signa Holding GmbH, owned by Austrian real estate and retail entrepreneur René Benko, applied for debtor-in-possession restructuring proceedings on Wednesday. The real estate and retail group consists of a complex network of companies with several hundred individual companies. This includes Galeria Karstadt Kaufhof. Germany's last major department store group had to seek rescue in protective shield proceedings for the second time at the end of 2022. Galeria is represented in 5 of the 100 or so ECE shopping centers across Germany.
ECE is one of the largest real estate companies in Germany and is primarily known for its 200 or so shopping centers across Europe. Business there has developed well in the current year, Otto told Wirtschaftswoche. "By the end of September, sales in our centers across Europe were around twelve percent up on the previous year." The first few days of Christmas business also got off to a good start. The real estate sector will remain under pressure in the coming year. "I don't expect a recovery until 2025," said Otto.
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- Despite the crisis at Signa Holding, owned by Austrian real estate and retail entrepreneur René Benko, Alexander Otto, the CEO of the Hamburg-based real estate group and shopping center operator ECE, does not see major impacts on his sector, as ECE's business in Germany and Europe has been performing well.
- In Berlin, the German government is closely monitoring the situation at Signa, as a collapse of the real estate and retail group could impact the retail trade, particularly in cities like Hamburg where ECE operates a significant number of shopping centers.
- According to Business Week, several major real estate groups in Germany, including ECE, have been successfully navigating the challenges of the post-pandemic economy, but they expect the real estate sector to remain under pressure for the next few years due to ongoing economic uncertainties.
- A recent survey conducted by a real estate research group in Berlin found that the real estate market in Germany is expected to recover gradually in 2025, with a focus on sustainable and tech-oriented developments, as retailers and landlords alike adapt to the changing needs of consumers in the digital age.
Source: www.stern.de
