According to the city of Hamburg, the owner of the Elbtower property, Elbtower Immobilien GmbH & Co. KG, has filed for insolvency. The city development authority announced on Friday that the city could now assert its right of repurchase and take over all planning and construction contracts. According to the authorities, Elbtower Immobilien GmbH & Co. KG was obliged to notify the city of the insolvency application. When the application was submitted, a case of “economic deterioration” occurred according to paragraph 10.7 of the property purchase agreement. “This means that the city of Hamburg can now assert its right to repurchase, which is secured by the purchase agreement, as well as the assumption of all planning and construction contracts,” said city development senator Karen Pein (SPD). The city will also secure its rights in the insolvency proceedings and will contact the provisional insolvency administrator immediately after the appointment.
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. According to its own information, 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. However, significant changes to the overall project could only be made with the consent of the city. The city’s right of repurchase allows the city to take control of the project if a viable solution is not found, the city said. Mayor Peter Tschentscher (SPD) 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 Elbtower is intended to be the crowning glory of Hamburg’s Hafencity. It is to be built in the far east near the Elbe Bridges, as a kind of counterpart to the Elbphilharmonie in the far west: “64 floors, 245 meters above sea level. A new view of the city,” it says on the Elbtower’s homepage. Planned completion and total costs so far: 2025 for around 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. The third tallest building in Germany, designed by London star architect David Chipperfield, will one day house, among other things, offices, shops, galleries, restaurants and a viewing platform on the 55th floor.