Construction - Tschentscher: Hamburg prepared for an emergency with Elbtower
Hamburg's mayor Peter Tschentscher believes that the city is prepared in the event of a total failure on the part of 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."
Project not yet a disaster
From Tschentscher's point of view, the project is not yet a disaster because it is possible to continue building at any time and is also economically advantageous. Unlike the Elbphilharmonie, the risk of the Elbtower lies solely with the private investors. "The city will not take on any unpaid bills," said Tschentscher.
The Elbtower is to be the crowning glory of Hamburg's HafenCity. It is to be built in the far east near the Elbe bridges, as a kind of counterpart to the Elbphilharmonie in the far west: "64 storeys, 245 meters above the sea. A new view of the city," says the Elbtower website. The third tallest building in Germany, designed by London star architect David Chipperfield, will house offices, stores, galleries, restaurants and a viewing platform on the 55th floor, among other things. Planned completion date and total costs: 2025 at a cost of around 950 million euros.
Standstill on the construction site since October
However, nothing has been happening on the Elbtower construction site since the end of October. At a height of 100 meters, the commissioned construction company Adolf Lupp from Nidda in Hesse has stopped work. Signa had not paid invoices, Managing Director Matthias Kaufmann told the "Hamburger Abendblatt" newspaper. Allegedly, around 37 million euros are involved. Signa itself did not initially comment on this when asked.
Real estate entrepreneur René Benko had taken out cheap loans during the low-interest phase, gained financially strong investors and thus greatly expanded his group. However, the recent rise in interest rates, construction costs and energy prices have put his complex network of companies in a precarious position - so much so that the Signa holding company and various sub-companies have already filed for insolvency.
City decides on future in the event of bankruptcy
Most recently, Signa Prime Selection AG (Innsbruck), which is responsible for the Elbtower, was hit on Thursday. The company owns commercial real estate in prime locations, including the Elbtower, the KaDeWe in Berlin and department store real estate belonging to the Galeria Karstadt Kaufhof chain. According to the city development authority, Signa Prime Selection AG is the indirect parent company of Hamburg Elbtower Immobilien GmbH & Co KG, the purchasing company for the Elbtower property, which is not yet insolvent.
Tschentscher said that should a buy-back take place, "then the city can decide, for example, whether to reallocate the property and the project. Theoretically, it would also be possible to demolish the building and use the property for other purposes. However, the most likely option as things stand today is that the Elbtower will be completed - "and with exactly the architecture and type of use that was agreed".
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- Despite the insolvency proceedings of Signa, Peter Tschentscher, the mayor of Hamburg, assures that the city is prepared and has contractual rights, including a repurchase option, in case of a total failure of the Elbtower project.
- The SPD politician emphasizes that the city will not take on any unpaid bills associated with the Elbtower project, even if private investors fail to continue construction.
- The Elbtower, a retail trade project, is expected to house offices, stores, galleries, and restaurants, and will serve as a counterpoint to the Elbphilharmonie in the HafenCity of Hamburg.
- Currently, the construction of the Elbtower is halted, with around 37 million euros owed to the construction company Adolf Lupp from Nidda, as reported by Managing Director Matthias Kaufmann.
- The city's future actions would depend on the outcome of bankruptcy proceedings, as the indirect parent company of Hamburg Elbtower Immobilien GmbH & Co KG, Signa Prime Selection AG, recently filed for insolvency.
- If the city were to exercise its repurchase option, it could potentially reallocate the property and project, even considering demolishing the building for alternative uses, according to Mayor Tschentscher.
Source: www.stern.de
