Signa founder Benko ready to withdraw from holding company?
According to a co-owner of the struggling real estate and retail holding company, Austrian Signa founder René Benko is prepared to take a drastic step. The billionaire has signaled his intention to withdraw as chairman of the advisory board of Signa Holding GmbH, Austrian industrialist and holding company shareholder Hans Peter Haselsteiner told radio station Ö1.
In addition, the 46-year-old Benko was prepared in principle to transfer his voting rights to a reorganizer with far-reaching powers, Haselsteiner said.
The media had previously reported that shareholders of the real estate holding company Signa were turning against Benko. Haselsteiner said of the co-owners' demands that "René Benko has basically responded positively to this request and his willingness is evident". However, Benko would like the co-owners to contribute to the restructuring of the Signa Group. According to Haselsteiner, negotiations on this could still take some time.
Benko was long regarded in Austria as a model entrepreneur and self-made billionaire, who began renovating attics as a teenager while still at school. Today, his holdings include prestigious properties such as the Chrysler Building in New York and the Elbe Tower, which is currently under construction. However, the real estate sector as a whole is now struggling in the face of rising interest rates and higher material costs.
Interruption to construction of the Elbtower in Hamburg
In Hamburg, political pressure is growing on the project developer Signa Real Estate, which is part of the Signa holding company, due to an interruption in the construction of the billion-euro Elbtower skyscraper. According to a spokesperson, Commerz Real, the asset manager involved in the project, is in talks with Signa and the construction company "in order to find a solution quickly" and to resume construction as soon as possible. The Signa Group itself has not commented to the media for weeks.
Haselsteiner confirmed that the shareholders of Signa Holding GmbH had asked Benko to appoint the German restructuring expert Arndt Geiwitz as general representative. Geiwitz had become known, among other things, through the insolvency proceedings of the department store chain Galeria Karstadt Kaufhof, which belongs to Signa. According to a spokesperson for the business and tax consultancy SGP Schneider Geiwitz & Partner, he received a corresponding consultancy assignment from Signa a few days ago. Geiwitz's current task is to "familiarize himself and gain an overview of the group of companies".
Reinhard Houben, the economic policy spokesman for the FDP parliamentary group, warned of a "desertification of German city centers" in view of the developments at Signa. "It must now be ensured for the future that Signa's properties, which are often prime locations in German city centers, continue to be used sensibly," he said.
Signa Sports United (SSU) had only recently filed for insolvency. SSU, which is registered as a Dutch company, is the parent company of several internet sporting goods retailers. Signa Holding had previously withdrawn a financing commitment of 150 million euros for SSU. At the beginning of June, the Signa Group sold the operating business of the Austrian furniture group Kika/Leiner. The large furniture retailer filed for insolvency shortly afterwards. "A second Kika/Leiner should be prevented," said Haselsteiner in the newspaper "Der Standard", explaining the investors' withdrawal demands.
Benko's withdrawal as chairman could potentially impact the trading of Signa's real estate assets in the market.In light of the construction delays of the Elbtower, Signa might consider partnering with seasoned experts like Arndt Geiwitz in the real estate trade sector for a fresh perspective.
Source: www.dpa.com
