As of: January 19, 2024 12:31 p.m
Construction on the Elbtower in Hamburg has been halted for almost three months because the Signa Group has run out of money. Now Elbtower Immobilien GmbH & Co. KG, the buyer of the property, has also filed for bankruptcy.
The authority for urban development and housing announced this on Friday. The timing of the bankruptcy filing comes as a surprise. Mayor Peter Tschentscher (SPD) also recently assumed that the shareholders of the Elbtower company would try to save the skyscraper project themselves for a longer period of time. Because they are now giving away influence and ownership.
Pein: Hamburg can assert the right of repurchase
The Senate had always emphasized that, unlike the Elbphilharmonie, the Ebtower was a purely private project. With the bankruptcy filing, the unfinished high-rise on the Elbe Bridges will probably go to the city. Urban Development Senator Karen Pein (SPD) said: “The city of Hamburg can now assert its right of repurchase secured by the purchase agreement as well as the assumption of all planning and construction contracts.” The city will also secure its rights in the insolvency proceedings and will contact the provisional insolvency administrator immediately after the appointment. The urban development authority assumes that a private sector solution will be found as part of the insolvency proceedings for the prompt resumption of construction work, which has been dormant since October. The city’s right of repurchase allows the city to take control of the project.
Buyback for 117 million euros?
Mayor Tschentscher said last. “If we buy it back, we would refund the original purchase price of 122 million euros without interest and less five million euros and in return we would get the property back.” The city would also get the approximately 100 meter high structure as a gift – worth at least 300 million euros. This is the case if the partners, including logistics billionaire Klaus-Michael Kühne, are unable to continue building the building.
Parent company Signa got into trouble
Elbtower Immobilien GmbH & Co. KG is an indirect subsidiary of the already insolvent Signa Prime Selection AG of the Austrian real estate entrepreneur René Benko. During the low interest rate period, he took out cheap loans, gained financially strong investors and thus significantly expanded his Signa Group. But the recent rise in interest rates, construction costs and energy prices have put his complex network of companies in trouble.
Elbtower is supposed to be 245 meters high
The Elbtower is intended to form the end of Hamburg’s Hafencity in the east. According to the original plans, the high-rise near the Elbe Bridges would be 245 meters high, making it the third tallest building in Germany. Offices, shops, galleries, restaurants and an observation deck on the 55th floor are planned. The costs have so far been put at 950 million euros. However, the construction site has been at a standstill since the end of October. At a height of 100 meters, the contracted construction company stopped work because bills were not paid.
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