Is billionaire Kühne taking over the Elbtower?
Construction work on René Benko's Elbtower in Hamburg has come to a standstill because Signa is no longer paying outstanding invoices. Now Klaus-Michael Kühne is considering taking over the prestigious project, according to insiders. Confirmation is still pending.
According to a media report, billionaire and logistics entrepreneur Klaus-Michael Kühne is looking into taking over the Elbtower high-rise project in his native city of Hamburg. This was reported by the "Handelsblatt" newspaper, citing several people familiar with the matter. The skyscraper, which is planned to cost 950 million euros to build, is currently the largest construction site of the struggling retail and real estate empire Signa, which was founded by Austrian billionaire René Benko.
High construction costs, rising interest rates on loans and home-grown problems had brought the group into difficulties and led to the insolvency of its subsidiary Signa Real Estate Management Germany (Signa REM). In addition to Benko's premium properties, the company also bundled businesses such as the development of the Elbtower. Construction work there is currently on hold because invoices have not been paid.
Report: Several insolvency applications in preparation
Signa Real Estate Management Germany has filed an official application for bankruptcy at the Charlottenburg district court, "Der Spiegel" reported on Friday. The company is a subsidiary of Signa Prime Selection, in which Signa has bundled prestigious properties such as the luxury department store KadeWe in Berlin, the Alsterhaus in Hamburg and the Oberpollinger in Munich. Previously, "Der Spiegel" had reported that Signa was preparing insolvency applications for several parts of the company. Kühne declined to comment on the alleged review of the Elbtower takeover when asked by "Handelsblatt"; spokespersons for Signa and the City of Hamburg could not initially be reached.
Kühne had conducted initial negotiations with the Hanseatic city, an insider told the newspaper. "They are already quite far along in the talks," he said. According to the report, however, people close to Kühne Holding said that the company is indeed looking into playing a role in shaping the future of the Elbtower. So far, however, no decisions have been made. The city does not yet have access to the project, meaning that the scope for influence is limited.
Given the circumstances, Klaus-Michael Kühne's interest in potentially rescuing René Benko's stalled Elbtower project due to Signa's insolvency issues was further highlighted. Despite not yet making any formal decisions, Kühne has reportedly held discussions with the Hanseatic city about the potential takeover.
Source: www.ntv.de
