Senator for Economic Affairs: Binding agreement with Signa

Senator for Economic Affairs Franziska Giffey is demanding clear statements from the real estate group Signa on how to proceed with the planned projects in Berlin. These include, for example, the Karstadt locations in Neukölln and Wedding. "We are not yet able to assess the situation conclusively. The Signa Group has not yet provided us with enough information," the SPD politician told the German Press Agency. A key question will be what Signa's financial situation looks like and which investors are ready for the future. "It is important for us that the following still applies: regardless of who gets involved and invests, there is a binding agreement." The department stores and the jobs must be preserved.

Giffey considers the development of department store locations to be essential

"That is the crucial point," said Giffey. "The other point is that the locations need development. The Karstadt location on Hermannplatz cannot remain as it is," said the senator. "Something has to happen there." Otherwise the store is not fit for the future. "This also applies to Müllerstraße in Wedding, where the location is to be renovated and redesigned from 2024 to 2027," said the SPD politician. "We expect Signa to make reliable statements on these and other major construction projects in the city."

"These are major investments in important locations in the city, and of course we need clarity as to whether Signa or another investor will be able to raise the necessary funds and realize the projects." We are looking at this very closely and it also depends on how the state of Berlin behaves.

Senator for Economic Affairs believes in the future of well-designed department stores

"But regardless of this, it is clear that what the state needs to do to lay the foundations for the further development of the locations must also be done independently of Signa," said Giffey. Standstill and closure could not be an alternative. "If we leave everything at Hermannplatz as it is, the store will have no future either," said the SPD politician. "I am convinced that well-designed department stores with an experience and meeting character also have a future. This can also be seen in other major cities in Europe and the world."

Giffey continues to believe that the agreement between the Berlin Senate and Signa under Michael Müller as Governing Mayor was the right one: "I think it's fine that there was a letter of intent in 2020 and that the red-green-red Senate at the time made a strong effort to achieve something here in the interests of the department stores, the retail trade in the city and the employees."

Giffey: Senate has made major concessions

The acquisition of building rights for very important properties in the city was a major concession at the time. "On the other hand, there was a huge commitment to preserving the department stores and jobs. There was a lot on both sides that was thrown into the balance."

This letter of intent was signed at a completely different time. "Berlin had strong economic growth, the construction industry was doing well," said Giffey. "Last year, in the wake of inflation, the energy crisis, price and interest rate rises, had a huge impact on the entire construction industry." No one could have predicted what crisis-related developments would come. "However, we can clearly see that the commitment that Signa made with the letter of intent remains valid."

Signa is pursuing a number of construction projects in Berlin. Around a week ago, the company announced in Vienna that founder René Benko was stepping down from the management of the group.

Giffey also emphasizes the need for urban development at the Karstadt location on Hermannplatz, stating, "Something has to happen there. This location is not fit for the future as it is."
In the discussion about the Signa Group's future involvement in Berlin's department store locations, Giffey reminds them, "We expect Signa to make reliable statements on these and other major construction projects in the city."
Giffey acknowledges the significant concessions made by the Senate in the past, stating, "The acquisition of building rights for very important properties in the city was a major concession at the time. On the other hand, there was a huge commitment to preserving the department stores and jobs."

Source: www.dpa.com