The next subsidiary of Benko’s Signa Group files for bankruptcy

As a result of the problems faced by the real estate and trading group Signa, another subsidiary has filed for bankruptcy. As became apparent on Monday from an online publication about bankruptcy announcements, this is now the case Signa Real Estate Management Germany GmbH affected, the Signa Group properties are developed and managed in Germany.

Accordingly, Berlin lawyer Torsten Martini is appointed as curator. Various media had previously reported on the insolvency application at the Berlin-Charlottenburg District Court. Signa Holding in Vienna, founded by Austrian billionaire René Benko, did not respond to repeated questions from the German news agency.

Signa Real Estate Management Germany, which had approximately 140 employees in 2021 according to the Federal Government Gazette, is a service provider within the Benko company network and not the owner of Signa properties and projects such as the Munich Alte Akademie, the Hamburg Alsterarkaden or the Berlinse Stroom high-rise buildings.

However, with the problems of Signa Real Estate Management Germany, a new crack is becoming visible in Benko’s complex corporate structure, which in Germany includes the department store group Galeria Karstadt Kaufhof, which has already been restructured twice, and the Elbtower in Hamburg, which has already been restructured twice restructured. hit by a construction freeze.

Construction freeze in Hamburg and bankruptcy of the sports retailer

There was at least a glimmer of hope on Monday at the currently dormant Elbtower skyscraper construction site in Hamburg’s Hafencity. Logistics billionaire Klaus-Michael Kühne is considering participating in the project, a spokeswoman for Kühne Holding AG said in response to a dpa request. However, there are currently no discussions with the city of Hamburg.

At the end of October, Signa’s sports retail division filed for bankruptcy. At the beginning of November, under pressure from fellow shareholders, Benko announced his resignation as chairman of the advisory board of Signa Holding, but remained the majority shareholder through his family foundation.

German innovator Arndt Gietenz was brought on board and provided with extensive management skills. It remains to be seen whether he will be able to present key steps to restructure the company by the end of November, as announced, and whether co-owners or other investors will make new money available for Signa in time.

In times of low interest rates, the Signa Group was able to expand significantly. But the real estate sector has been struggling with rising construction and energy costs and higher interest rates since the start of the war in Ukraine.

Due to the increased interest rates, Signa Prime Selection was faced with a devaluation of 1.17 billion euros last year. According to the luxury real estate holding company’s consolidated financial statements, properties in Germany were particularly affected.

Criticism and questions about billionaire Benko

With the Signa crisis, 46-year-old Benko has once again become the center of media and politics. As a teenager he started converting attics in his hometown of Innsbruck. With the help of financially strong investors, he managed to penetrate prestigious buildings such as the Chrysler Building in New York or the luxurious Hotel Bauer in Venice, becoming one of the richest Austrians.

But within weeks, his estimated wealth would have shrunk significantly. The American magazine Forbes estimated Benko at 5.6 billion euros in early November, but on Monday the value was only 2.6 billion euros.

Benko’s business model has been repeatedly criticized. Union members and politicians have accused Benko of only being interested in Galeria Karstadt Kaufhof because of the real estate. Similar questions arose last summer when Signa sold the Austrian furniture chain Kika/Leiner.

Just a few days after the deal was announced, the new owner filed for bankruptcy and announced the layoff of 1,900 employees. This sale and Benko’s proximity to Austrian politics will be the subject of two parliamentary investigative committees in Austria in the coming months. (sda/awp/dpa)