Report: Signa halts construction projects in Berlin
According to a report in the "Tagesspiegel", the struggling real estate group Signa has stopped all construction projects in Berlin. These include the Karstadt locations on Hermannplatz and in Wedding as well as the "Glance" project in Franklinstrasse (Charlottenburg). The "Tagesspiegel" referred to "company circles" in its report on Wednesday. There was no confirmation from Signa.
According to the newspaper report, new construction projects in Schönhauser Allee, the Bremsenwerk at Ostkreuz, the Femina Palast in Nürnberger Straße, the Ku'damm 231 high-rise project on the Karstadt site in Charlottenburg and the Tauentzienstraße 20 project are also affected by the construction freeze.
Signa announced in Vienna on Wednesday that founder René Benko was withdrawing from the management of the ailing group. Similar to other companies in the real estate sector, Signa is struggling with increased interest rates and higher material costs.
Despite Signa halting all construction projects in Berlin, there are still ongoing challenges for the real estate group in managing their expenses, with increased interest rates and higher material costs being major factors. Due to this construction freeze, numerous projects like the ones on Schönhauser Allee, Bremsenwerk, Femina Palast, Ku'damm 231, and Tauentzienstraße 20 will experience delays in their real estate construction.
Source: www.dpa.com
