Signa insolvency - Tschentscher: Hamburg equipped for an emergency at the Elbtower
According to Mayor Peter Tschentscher,Hamburg is prepared in the event of a total failure of the Elbtower investor Signa. "The likely scenario is not that nothing will happen for five years," the SPD politician told the German Press Agency. It is possible that the private investors will find a solution and continue building - as they have announced. "Even in insolvency proceedings, the city would secure its contractual rights." This would include a repurchase right, which the city would not have to implement immediately. This would leave sufficient time to examine the situation. "In the event of a repurchase, we would refund the original purchase price of 122 million euros, excluding interest and minus five million euros, and in return receive the property back."
Following the insolvency of Signa Holding and several smaller companies, Signa Prime Selection AG, which is responsible for the Elbtower, applied for debtor-in-possession restructuring proceedings on Thursday. According to the city development authority, it is the indirect parent of the purchasing company of the Elbtower property, Hamburg Elbtower Immobilien GmbH & Co KG, which has not yet become insolvent.
The Elbtower in the east of HafenCity is to be 245 meters high and will house offices, stores, galleries, restaurants and a viewing platform on the 55th floor, among other things. Completion is currently planned for 2025, with total costs estimated at around 950 million euros. However, the construction site has been at a standstill since October. According to the construction company Adolf Lupp from Nidda in Hesse, Signa, which has run into difficulties, has not paid invoices. Signa itself initially refused to comment on this when asked.
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- Despite the insolvency of Signa Holding and its subsidiaries, Mayor Peter Tschentscher of ['Hamburg'] believes the city is prepared for any potential failure of the Elbtower project.
- The ['Retail trade'] sector will likely be affected if the Elbtower, a mixed-use development set to house offices, stores, and restaurants, fails to complete construction due to Signa's financial troubles.
- The German Press Agency reported that Tschentscher, a member of the ['SPD'], expressed confidence that the city could secure its contractual rights even in the event of an ['Insolvency'] of Signa's associated companies.
- Peter Tschentscher emphasized that any repurchase of the Elbtower property, estimated at 122 million euros, would involve refunding the original purchase price and returning the property to the city, a process that would allow for a careful examination of the situation.
- The ['Real estate'] and ['Construction'] industries are closely monitoring the situation surrounding Signa and the Elbtower, considered a high-profile and complex ['Total failure'] of a major investor, which could have impactful ripples throughout the German market.
Source: www.stern.de
