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Hamburg: Elbtower will be significantly more expensive than planned

2022-08-19T11:06:17.445Z

Investor René Benko's Elbtower is to become the new landmark in Hamburg's HafenCity - but according to SPIEGEL information, the structure could cost a quarter of a billion euros more than estimated.



Elbtower in Hamburg (visualization)

Photo: Chipperfield / SIGNA / dpa

Numerous major projects in recent years have impressively demonstrated that the construction of iconic real estate in Germany is an undertaking that usually ends up being more expensive than expected.

Hamburg's Elbtower, the planned second landmark of sophisticated HafenCity after the Elbphilharmonie, should be no exception.

In an internal document entitled »Green Financing Elbtower« from this July, the client Signa estimates the »total investment costs« at around 950 million euros.

750 million euros of this is to be financed by credit, term of 25 years, with a repayment of only one percent from 2027. So far, costs of 700 million euros have always been mentioned.

Risky deals are nothing unusual in the heated real estate industry in recent years - especially with René Benko, Austrian billionaire and Signa owner.

He has earned a reputation in the industry for always pushing the limits with projects.

Accordingly, Signa rates the Elbtower aggressively.

According to the document, when it is completed in 2026, the book value should already be 1.45 billion euros – which would mean a profit of half a billion euros.

Planned rental income: more than 48.3 million euros annually.

They are said to come from a branch of the Nobu hotel chain, in which actor Robert De Niro is involved.

The Hamburg Commercial Bank and co-working spaces for doctors and therapists are also moving in.

Despite the rising construction prices, Signa recently denied rising costs, says Markus Schreiber (SPD), who sits on the budget committee of the Hamburg Parliament.

You can see that Benko doesn't care about the truth.

“Signa finally has to present his calculations.

Hamburg must not become the plaything of an unfair investor.«

Signa did not comment on the numbers in writing.

A spokesman said verbally that they were partly correct and partly outdated.

The higher investment costs have something to do with the increased number of square meters.

sbo/sms

Source: spiegel

All business articles on 2022-08-19

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