Urban Development - Tschentscher rejects Kühne's Elbtower proposal
Hamburg's Mayor Peter Tschentscher (SPD) has ruled out financial involvement of the city in the further construction of the Elbtower, opposing demands from billionaire Klaus-Michael Kühne.
"Mr. Benko, Signa-Group and their investors have caused significant damage to the common good in Austria and Germany. This does not give us a moral position to demand anything from the affected cities or uninvolved third parties," Tschentscher told the German Press Agency.
Clear rejection of Kühne
Kühne had recently called on Hamburg in "Spiegel" to clearly state from the First Mayor's mouth that the city is ready to work with the private sector to bring the Elbtower project "to a good end." The city should commit to using half of the Elbtower's rental spaces for city authorities and rent them immediately upon completion of the building, "at rental conditions that secure the profitability of the object."
The Mayor emphasized that the city of Hamburg stands by its contracts and commitments. The city sold the land for 122 million euros and granted permission for the Elbtower's construction. It was always clear that the project risk lay with the private investor. "The Senate has no intention of taking over the management or direction for the further construction or of participating in the completion with its own capital."
Elbtower to be Germany's third tallest building
According to the current plans, the Elbtower in the Hamburg Hafencity, with 64 floors and a height of 245 meters, is to be Germany's third tallest building. So far, offices, shops, galleries, cafes, restaurants, a fitness studio, and a publicly accessible observation platform in the 55th floor, as well as a hotel, were planned for the skyscraper.
The building was supposed to be completed in 2025 and cost around 950 million euros. At the end of October 2023, the contracted construction company stopped work at a height of 100 meters due to unpaid bills from the Signa Group, the Austrian real estate company owned by René Benko. The Elbtower Immobilien GmbH & Co. KG filed for insolvency in January. It is a subsidiary of the insolvent Signa Prime Selection AG.
Tschentscher expects solution in second half of year
Tschentscher stated that the insolvency administrator is working on a private-sector solution. "I welcome the engagement of private bidders and assume that a solution for the completion of the Elbtower will be found in the second half of the year." The plans are designed to ensure that the tower is completed. Structural changes are possible in coordination with the city and the architect, but a fundamentally different building on the plot would require a completely new procedure.
Kühne lives in Switzerland and interferes in Hamburg
Born in Hamburg, Kühne, whose father moved the logistics company Kühne + Nagel to Switzerland in protest against the socially liberal federal government and for tax reasons in 1969, has lived in Schindellegi in the Canton of Schwyz for decades but is very active in Hamburg. He has been involved with the second-league football club HSV for years, is the owner of the luxury hotel Fontenay, and has a stake in Hapag-Lloyd shipping.
- Despite René Benko and Signa-Group's controversial impact on urban planning in Austria and Germany, Mayor Tschentscher of Hamburg has refused any financial involvement in the continued construction of the Elbtower.
- Michael Kuhne, a billionaire living in Switzerland, has called on Hamburg to collaborate with the private sector to finalize the Elbtower project, proposing that half of the rental spaces be allocated to city authorities upon completion.
- The city of Hamburg, having sold the land for the Elbtower construction and granted necessary permits, remains committed to its contracts and obligations, with no intention of taking over management, directing the further construction, or investing additional capital.
- Once completed, the Elbtower, with 64 floors and a height of 245 meters, will become Germany's third tallest building, featuring offices, shops, galleries, cafes, restaurants, a fitness studio, an observation deck, and a hotel.
- Construction of the Elbtower was initially scheduled to be completed in 2025 at a cost of around 950 million euros, but was halted at a height of 100 meters in October 2023 due to unpaid bills from the Signa Group, leading to insolvency filings.
- Tschentscher expects a private-sector solution for the Elbtower's completion in the second half of the year, with structural changes possible in consultation with the city and architect, but a fundamentally different building on the site would require a fresh procedure.
- Michael Kühne, a prominent figure in Hamburg's business community despite living in Switzerland, has been involved with football club HSV, owns the Fontenay luxury hotel, and holds stakes in Hapag-Lloyd shipping, expressing interest and influence in local affairs.
