The largely insolvent Signa group's most prestigious properties will be sold by an administrator in the coming years. The creditors of Signa Prime Selection AG approved this plan on Monday in Vienna, as announced by the bankruptcy administrator of this important subsidiary.
Signa Prime is considered the jewel of Austrian investor René Benko's Signa group, which has fallen into crisis as a result of rising interest rates, construction costs and energy prices. The Prime portfolio includes, among others, the unfinished Elb Tower in Hamburg, the luxury department store KaDeWe in Berlin, properties of the department store chain Galeria Karstadt Kaufhof and the building of the Austrian Constitutional Court.
For tax reasons, German real estate is not subject to guardianship
According to the latest data from bankruptcy administrator Norbert Abel, Signa Prime's creditors have registered claims of around 12.8 billion euros. Of this amount, the administrator has so far only recognized around 5.9 billion euros. According to his proposal, he as trustee should now sell all the properties in an orderly manner over a period of three to five years in order to benefit from the expected market recovery. This should cover at least 30 percent of claims.
For tax reasons, Signa Prime's German real estate is not formally subordinated to the trustee, but de facto the latter retains control over Signa Prime's approval rights and outstanding rights over its subsidiaries. The meeting of creditors in Vienna focused solely on the liquidation of the Signa real estate company, not on the sale of department stores such as KaDeWe and the Karstadt Kaufhof Gallery. However, these retailers, which also belong to the Signa group, are also insolvent and are looking for buyers.
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