According to a media report, Signa Real Estate Management Germany has filed for bankruptcy. It is the first bankruptcy of a real estate company belonging to the Austrian investor Benko’s ailing Signa Group.
A subsidiary of the ailing Signa Group owned by Austrian investor René Benko has filed for bankruptcy, according to a media report. Signa Real Estate Management Germany has filed an official application for bankruptcy with the Charlottenburg District Court, reported “Spiegel”.
It is a subsidiary of Signa Prime Selection, in which Signa has bundled prestigious properties. This has construction projects in central inner-city locations in several major German cities, such as the Elbtower in Hamburg or the “Mynd” high-rise on Berlin’s Alexanderplatz. However, many of the construction sites are now at a standstill – high construction costs, rising loan interest rates and home-made problems have put the company under pressure.
The bankruptcy that has now become known is the first of a real estate company in the Signa Group. “Spiegel” had previously reported that Signa was preparing insolvency applications for several parts of the company. There was no comment from Signa on this either.
Benko retired in early November
The extensive Signa Group founded by Benko, which also includes the Galeria Karstadt Kaufhof department store group, is in financial difficulties. The company is active across Europe; according to the company, the gross asset value of the real estate division alone is 27 billion euros. Signa Sports United had to file for bankruptcy in October.
A restructuring process was initiated at the Signa Group at the beginning of November. Benko announced that he would withdraw from the holding company. Business partners and investors had apparently lost trust in his business policy. The auditor and tax advisor Arndt Geiwitz was appointed to take care of rescuing the group. He is considered one of the most prominent renovators in Germany. However, the Benko Family Private Foundation remained the largest shareholder in Signa.
U-Committee in Austria on possible preferential treatment
Benko is now becoming the focus of a new U-committee in Austria. Austrian opposition parties want to investigate the alleged preference for billionaires by the conservative ÖVP chancellor party in a committee of inquiry. The social democratic SPÖ and the right-wing FPÖ announced on Friday that the focus would be primarily on Benko and his real estate and trading group Signa.
“It’s about the extent to which he was treated better by ÖVP government members and their offices” than other entrepreneurs, said SPÖ MP Kai Jan Krainer about Benko. It was said that the U-Committee should shed light on the awarding of Corona aid to Signa Group companies. It will also be investigated whether companies run by billionaires like Benko received tax advantages because of good contacts with politicians.