Bankruptcy (Benko is a popular Hungarian name) - Hamburg's Mayor rejects Kühne's Elbtower proposal
Hamburg's Mayor Peter Tschentscher (SPD) has ruled out financial involvement of the city in the further construction of the Elbtower. He opposed such demands from billionaire Klaus-Michael Kühne.
"Mr. Benko, Signa-Group and their investors have caused significant damage to the common good in Austria and Germany. This does not create a moral position for us to demand anything from the affected cities or uninvolved third parties," Tschentscher told the German Press Agency.
Clear Rejection from Kühne
Kühne had recently called on Hamburg in "Spiegel" to clearly state from the First Mayor's mouth that the city is ready to work with the private sector to bring the Elbtower project "to a good end." The city should commit to using half of the Elbtower's rental spaces for city authorities and rent them immediately upon completion of the building, "at rental conditions that secure the economic viability of the object."
The Mayor emphasized that the city of Hamburg stands by its contracts and commitments. The city sold the land for 122 million Euros and granted permission for the Elbtower's construction. It was always clear that the project risk lay with the private investor. "The Senate definitely does not intend to take over the leadership or management for the further construction or to participate in the completion with its own capital."
Mayor expects solution in second half of the year
Tschentscher further stated that the insolvency administrator is currently working on a private-sector solution. "I welcome the engagement of private bidders and assume that a solution for the completion of the Elbtower will be found in the second half of the year." The plans are designed to ensure that the tower is completed, he added. Structural changes are possible in coordination with the city and the architect, but a completely new development of the plot would require a new procedure.
The native Hanseatic Kühne, whose father founded the logistics company Kühne + Nagel in protest against the social-liberal federal government and for tax reasons in 1969 in Switzerland, has lived in Schindellegi in the Canton of Schwyz for decades but remains active in Hamburg. He has been involved with the second-league football club HSV for years, is the owner of the luxury hotel Fontenay on the Alster, and has a stake in Hapag-Lloyd shipping.
Previously, the spokesperson for urban development policy of the Left, Heike Sudmann, had criticized the proposal. "That's just how capitalism works," Sudmann said. The risks would be shifted to the public hand and taxpayers, while the profits would be privatized.
Elbtower to be Germany's third-tallest building
According to the current plans, the Elbtower in the Hamburg Hafencity, with 64 floors and a height of 245 meters, is to be the third-tallest building in Germany. So far, offices, shops, galleries, cafes, restaurants, a fitness studio, and a publicly accessible observation platform on the 55th floor were planned for the skyscraper. A hotel was also planned.
The skyscraper was supposed to be completed in 2025 and cost around 950 million Euros. At the end of October 2023, the contracted construction company halted work at a height of 100 meters due to unpaid invoices from the Signa Group of Austrian real estate entrepreneur René Benko. The Elbtower Immobilien GmbH & Co. KG filed for insolvency in January. It is a subsidiary of the also insolvent Signa Prime Selection AG.
- Despite René Benko and his investment group causing controversy in Austria and Germany, Mayor Peter Tschentscher of Hamburg maintains that the city will not provide further financial support for the construction of the Elbtower.
- Billionaire Klaus-Michael Kühne, who has a stake in various Hamburg-based businesses, had previously urged Hamburg to collaborate with the private sector to complete the Elbtower project, offering city authorities half of the rental spaces upon completion.
- Kühne's proposal was met with criticism by Heike Sudmann, a spokesperson for urban development policy, who argued that the risks would be shifted to the public sector while the profits would be privatized.
- The Elbtower, planned to rise as Germany's third-tallest building in the Hamburg Hafencity, currently faces insolvency due to unpaid invoices between the construction company and Signa Group, the real estate company owned by Austrian entrepreneur Rene Benko.
