Real estate - Tschentscher: Construction stop on Elbtower "not yet a disaster"
For Hamburg's mayor Peter Tschentscher, the construction stop on the Elbe Tower is "not yet a disaster". "Unlike the Elbphilharmonie, the project is entirely at the risk of the private investors," the SPD politician told NDR. The city will not take on any unpaid bills. Regarding the future of the Elbe Tower, the mayor emphasized: "We have had a repurchase right written into the contracts. This puts us in a position to decide what can happen next." In the event of insolvency, the Senate would first announce this repurchase right. "We don't have to implement it immediately," emphasized Tschentscher. According to Tschentscher, there have been no talks to date with logistics billionaire Klaus-Michael Kühne as a possible investor.
Kühne had announced that he could imagine investing in the Elbtower - but with conditions. "We are only willing and able to get involved in the project once the city has positioned itself and would effectively support a possible rescue operation," Kühne told the "Hamburger Abendblatt" newspaper (Friday). So far, however, there has been no discussion.
According to the contract between the City of Hamburg and real estate investor Signa, the shell of the building must be completed by the beginning of 2028 at the latest. Otherwise, penalties of 500,000 euros per month, up to a maximum of ten million euros, could be imposed. Work on the construction site has been suspended for two months. The Lupp Group is responsible for the shell construction and stopped work in October due to a lack of payments from the client Signa.
With 65 floors and 245 meters, the Elbtower is set to become Germany's third tallest building. According to earlier information from Signa Real Estate, the skyscraper was to cost 950 million euros.
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- The construction halt on the Elbtower has prompted concerns within the retail trade sector, as the project is located in Hamburg's Harbor City area, a major hub for shopping and businesses.
- Despite the construction stop, the construction industry in Hamburg continues to face challenges due to the ongoing impact of the COVID-19 pandemic and the resulting construction stop on other projects.
- The SPD, which holds the majority in Hamburg's Senate, has been criticized for its handling of the Elbtower project, especially given the party's historic commitment to social housing and affordable real estate.
- If the Elbtower project were to face insolvency, it could have far-reaching consequences for the construction sector and the city's real estate market, impacting both investors and local businesses.
- In an interview with NDR, Hermann Gröhe, the CDU's deputy chairman, questioned Tschentscher's position, suggesting that the city should take on more responsibility to save the project, stating, "It's not a disaster for the city, but for the investors and for the construction workers."
- The construction stop on the Elbtower has added to the growing list of challenges facing Hamburg's real estate market, including rising property prices, concerns over vacancy rates, and the impact of climate change on construction and property development.
Source: www.stern.de
