Signa Holding not a contractual partner in Elbtower project
The announced insolvency application by Austrian real estate and retail entrepreneur René Benko's Signa Holding GmbH has no direct consequences for the currently dormant Elbtower skyscraper project in Hamburg's HafenCity. "There is no contractual connection between the company purchasing the Elbtower and Signa Holding GmbH," a spokesperson for the city development authority said on Wednesday in response to a dpa query. "This has no direct impact on the existing contractual relationship between the City of Hamburg and the purchasing company."
The land purchase agreement for the Elbtower project was concluded between the Hanseatic City of Hamburg and a project company called Hamburg, Elbtower Immobilien GmbH & Co KG and Signa Prime Selection AG. "Signa Holding GmbH is one of the shareholders of Signa Prime Selection AG," the press release states. "In this role, it is the guarantor for the fulfillment of contractual obligations." According to the spokesperson, the authority intends to monitor the situation closely "so that the City of Hamburg can take further steps if necessary."
Signa Holding GmbH announced on Wednesday that it would apply to the Vienna Commercial Court for the opening of restructuring proceedings under self-administration. "Despite considerable efforts in recent weeks, the necessary liquidity for an out-of-court restructuring could not be secured to a sufficient extent," it said.
Despite being a shareholder and guarantor in Signa Prime Selection AG for the Elbtower project, Signa Holding's insolvency application does not affect the contractual relationship between the City of Hamburg and the project company directly. The construction sector, including retail trade and real estate development, continues to be an area of interest for Signa Holding, as shown by its involvement in various projects.
Source: www.dpa.com
