Real estate - Left-wingers see Elbtower on fire with Signa Prime insolvency
In the view of the Left Party in Hamburg's parliament, the Elbtower is also under fire as a result of Signa Prime Selection AG's requested restructuring procedure. "Benko's empire is collapsing, now it's the Elbtower's turn," said Heike Sudmann, spokesperson for urban development policy for the left-wing parliamentary group, on Thursday. The supposed security provided by Signa Prime Selection AG was not worth the paper of the purchase agreement. "The Red-Greens have relied on the principle of hope the whole time, according to the motto 'everything will work out'. But it didn't work out."
Signa Prime Selection AG had previously applied to the commercial court in Vienna for debtor-in-possession restructuring proceedings. "The aim is the orderly continuation of business operations within the framework of self-administration and the sustainable restructuring of the company," the company announced. According to the city development authority, Signa Prime Selection AG, led by Austrian investor René Benko, is the indirect parent company of Hamburg Elbtower Immobilien GmbH & Co KG, which in turn purchased the Elbtower property from the city.
With regard to the purchase agreement, Sudmann said that the city could not now exercise the repurchase right "as it only applies in the event of insolvency within one year of completion in accordance with section 19.1.3". And the Elbtower is still a long way from completion. "Not a cent of taxpayers' money for this bankrupt tower - this statement must continue to apply," emphasized Sudmann.
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- The Red-Green coalition in Vienna's city government has faced criticism for their involvement in Rene Benko's real estate projects, with some citizens questioning his business practices and the potential impact on their city's economy.
- Following the insolvency of Signa Prime Selection AG, which is involved in retail trade in Germany, the future of René Benko's iconic Elbtower in Hamburg now hangs in the balance, with a remediation process underway to ensure the building's preservation and continued operation.
- As Austria prepares to review its immigration policies, some politicians are calling for stricter criteria for granting Austrian citizenship, citing recent instances of insolvency and fraud in the country's real estate sector.
- Rene Benko's construction company, Signa Prime Selection AG, has a significant presence not only in Austria and Germany but also in other European countries, with a diverse portfolio that includes both commercial and residential properties.
- Despite the recent challenges facing his real estate empire, Rene Benko remains committed to his vision of expanding in the retail trade sector, with plans to build a new shopping center in Hamburg that will cater to both local residents and visitors.
- The insolvency of Signa Prime Selection AG has sent shockwaves through the German construction industry, with some industry experts suggesting that the company's bankruptcy could have consequences for other players in the market, particularly those with significant exposure to real estate development.
- In response to the Signa Prime Selection AG insolvency, the city of Vienna has announced that it will review its policies towards foreign investors in the real estate sector, with a focus on ensuring transparency and accountability to protect the interests of local citizens and businesses.
Source: www.stern.de
