KaDeWe welcomes a new Thai operator.
KaDeWe, Oberpollinger, and Alsterhaus are jewels among Germany's luxury department stores, and these jewels are now up for sale. The retail operations of these highly-esteemed establishments - located in Berlin, Munich, and Hamburg respectively - have been acquired by the Thai Central Group. Sources from the German Press Agency report that a deal between the Central Group and KaDeWe has been struck, though it awaits the approval of antitrust regulations.
In addition, Central is allegedly negotiating rental terms with the landlords of the Munich and Hamburg buildings. Although the Central Group has already procured the building previously owned by the insolvent Signa subsidiary Prime Selection, the acquisition price has not been disclosed. However, based on "Handelsblatt" reports, it's estimated to be around a billion Euros. Central refers to this acquisition as the "first significant achievement" in the rehabilitation and perpetuation of the KaDeWe Group.
The historic edifices in Berlin, Munich, and Hamburg, boasting around 60,000 square meters of retail space, have been institutions for the KaDeWe Group. In January, KaDeWe filed for insolvency in a bid to break free from the unreasonable rents imposed by Signa.
Discussions for further asset acquisition
The Central Group has held a majority stake in the KaDeWe Group since 2015. It is now "discussing" potential acquisitions of additional assets with company executives and creditors, the Thai conglomerate shared. Central believes it can secure agreements and subsequently orchestrate a well-ordered exit from insolvency.
The Central Group has been controlled by the Chirathivat family for four generations. The company holds a significant standing as a worldwide retail leader with shopping malls, eateries, and real estate throughout Southeast Asia and Europe. Central's growth into Europe began with the purchase of the Italian department store chain La Rinascente in 2011. A subsequent purchase in 2013 extended its reach with the acquisition of Denmark's Illum. Just last year, Central, along with Signa, gained control of the British department store chain Selfridges.
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Central Group is planning further takeovers and mergers, discussing potential acquisitions with KaDeWe Group executives and creditors. The successful acquisition of KaDeWe Group's retail operations in Berlin, Munich, and Hamburg has positioned Central Group to explore opportunities in the German market, following their expansion into Europe with previous acquisitions.
