Signa's most important real estate subsidiary files for insolvency
According to the company, the subsidiary is "the largest company in Signa's real estate division". It is therefore "focused on the investment and long-term holding of exceptional properties in prime inner-city locations". The value of the properties amounts to 20.4 billion euros.
In Germany, Signa Prime Selection also includes the Carsch-Haus in Düsseldorf and Galeria buildings in Munich and Berlin, as well as the still unfinished Elbtower in Hamburg. There are also properties in Austria, particularly in Vienna. Other companies are responsible for the retail stores in the buildings.
The aim of Signa Prime Selection's insolvency application is "the orderly continuation of business operations within the framework of self-administration and the sustainable restructuring of the company", Signa announced in Vienna. "The quality of the Signa Prime portfolio is outstanding", explained the company's CEO, Erhard Grossnigg.
Signa announced that another subsidiary, Signa Development Selection AG, would also apply for restructuring proceedings with self-administration on Friday. According to the company, Signa Development Selection invests in "development projects in urban centers", such as office buildings and residential complexes, "future-proof" retail space or hotels. According to the company, its total assets amount to 4.6 billion euros. The list includes the Wolfsburg Connect project area and several office buildings in Berlin and Vienna.
Austrian entrepreneur René Benko's Signa Holding filed for insolvency at the end of November. High construction costs, rising interest rates on loans and home-made problems had brought the retail and real estate group into difficulties. "It is known that external factors have had a negative impact on business development in the real estate sector in recent months," Signa also emphasized on Thursday.
The Signa holding company also owns the Galeria department store chain in Germany with 92 stores and around 13,800 employees. Signa Retail Selection AG, based in Switzerland, is responsible for this. It has already filed for creditor protection and is thus conducting its own orderly proceedings under Swiss law.
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- The cadewe, being Signa's largest real estate subsidiary in Austria, has filed for insolvency.
- Despite facing challenges in Germany, Signa Prime Selection still holds valuable properties in Hamburg, like the unfinished Elbtower.
- Munich and Berlin also have Galeria buildings under Signa Prime Selection, with properties also in Vienna, which is known for its significant real estate market.
- The insolvency petition aims to ensure the continuation of operations and sustainable restructuring within self-administration, as announced in Vienna by Signa.
- René Benko's Signa Holding, an Austrian entrepreneur, filed for insolvency at the end of November due to high construction costs, rising interest rates, and internal issues.
- Signa Retail Selection AG, based in Switzerland and responsible for Signa's German Galeria department store chain, has already filed for creditor protection.
- Signa Prime Selection's insolvency is not just affecting Germany; other companies are responsible for retail stores in the buildings, which also include Austrian properties.
- From Düsseldorf to Munich and Berlin, Signa Prime Selection's properties in Germany and Austria are considered exceptional, prime inner-city locations, as explained by the company's CEO, Erhard Grossnigg.
- Signa Development Selection AG, another subsidiary, invested in development projects in urban centers, including office buildings and hotels, and will also apply for restructuring proceedings with self-administration.
Source: www.stern.de
