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The future of what is currently Vienna’s most prominent shell building is even more uncertain today. The project company for the planned Lamarr department store on Vienna’s Mariahilfer Strasse filed for bankruptcy proceedings at the Vienna Commercial Court on Friday, creditor protectors AKV, Creditreform and KSV1870 announced.

Due to the bankruptcy of the Signa flagship Signa Prime Selection, financing for the completion of construction is no longer secured. According to creditor protectors, the now bankrupt Signa project company “Mariahilfer Strasse 10-18 Immobilien GmbH” owes the banks 260 million euros and the suppliers 16.5 million euros. In total, approximately 77 creditors have been affected. In addition, the building is encumbered with a lien of 390 million euros.

Prestige project in Vienna

The Signa company led by Tyrolean investor Rene Benko was founded in 2021 and aimed to build and develop a large department store and hotel. The flagship store of the furniture chain Leiner was previously located at this address; the top floor was occupied by former Kika/Leiner owner Herbert Koch and his family.

The multi-storey department store, named after Vienna-born Hollywood diva and inventor Hedy Lamarr, is scheduled to open in spring 2025. Signa’s bankruptcies have made the project increasingly quiet; construction work has effectively been at a standstill since December. The shell was completed in June 2023 and Signa invited media representatives to a roofing press event.

“It is not yet possible to assess whether the intention is to continue the company and reduce debts,” writes the Alpine Creditors Association (AKV). According to KSV1870, the company has made intensive efforts in recent weeks to secure the necessary financing to complete construction.

Discussions were mainly held with potential investors. These conversations have not yet been successful. Against this background, bankruptcy proceedings had to be initiated.

Spar shows interest

Trading group Spar has a fundamental interest in real estate. “We tried very hard to get the Hedy Lamarr – the then Leiner on Mariahilfer Strasse – before we sold it to René Benko, but we didn’t get the chance,” Spar CEO Hans Reisch said in an interview. “That would still be an asset we would be interested in. But nothing is concrete.”

According to the commercial register (“WirtschaftsCompass”), the bankrupt “Mariahilfer Strasse 10-18 Immobilien GmbH” is each 50 percent owned by Signa Prime Capital Invest GmbH and Skyred Holding 9, based in Luxembourg. Signa Prime Capital Invest is a subsidiary of the bankrupt Signa Prime Selection AG and Skyred Holding 9 is an indirect subsidiary of the Thai Central Group.

The KaDeWe Group, which also belongs to the Signa and Central Group, would have been intended to operate the Lamarr. At the request of APA, KaDeWe initially did not comment on the department store plans in Vienna. In addition, Signa and Central Group are also owned by the Swiss department store chain Globus. (sda/awp/apa)