As of: February 15, 2024, 11:04 a.m
By: Nadja Hoffmann
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Their future is now being decided: (from left) the Hertie at the train station, the Old Academy and the Oberpollinger.
© Haag, Schlaf, Jantz
The restructuring plan for the insolvent Signa-Prime must be in place by Sunday.
It's also about the future of Munich's houses.
And billions of dollars in debt.
Some houses are real gems, others are silverware and then there are buildings that only sparkle beautifully because of their location.
René Benko was a real estate collector who filled his treasure chest throughout Europe and New York.
The contents are all that remain after the collapse of the Signa empire.
If you like, it's all about the crown jewels on Sunday in Vienna.
After the bankruptcy of the luxury real estate division Prime, the creditors decide on the restructuring concept for the future.
This involves an incredible debt of around 4.5 billion euros and also the most important Signa buildings in Munich.
The luxury department store Oberpollinger, the Alte Akademie and the Hertie am Bahnhofplatz can be found under the Prime roof.
The big question: Will these buildings be sold or not?
Elbtower in Hamburg will probably remain in Signa's ownership
Basically, Signa Prime, which went bankrupt at the end of December, should continue to exist in the future.
The insolvency proceedings are ongoing under self-administration.
The Signa board members have a say, as does the insolvency administrator, lawyer Norbert Abel.
We have been looking together over the past few weeks: How many buildings from the Prime portfolio need to be sold in order to partially pay off the creditors and then be able to move on?
Specifically, this means: At least 30 percent of the debt, i.e. around 1.35 billion euros, must be repaid in the next two years.
What has to go and what stays should be decided now.
According to the Austrian newspaper “Der Standard”, Prime wants to hold on to the prestigious Elbtower project in Hamburg.
The same applies to the Lamarr department store project in Vienna or the Palazzo Hotel Bauer in Venice.
Signa wants to separate itself from other flagship addresses.
And probably as quickly as possible.
Structural sales started on Tuesday
This explains why sales have actually already begun.
As reported, the first thing Prime does is part with a bulging jewelry box labeled “Signa Prime Assets GmbH.”
This includes, among other things: the Tyrol department store, areas of the Golden Quarter in Vienna, the posh Park Hyatt hotel and the building of the Austrian Constitutional Court.
All of this is now coming onto the market as a package.
Regarding the structured sale, which began on Tuesday, Abel says: “It is an essential part of the Signa Prime Selection restructuring concept.” Is such a package also conceivable for Munich?
And should we actually sell all three prime properties?
Since the insolvency proceedings are not public, there are currently no official answers to these questions.
The next few weeks will be exciting.
Especially since Mayor Dieter Reiter (SPD) is already expecting a solution for the Old Academy “soon”.
The fact that the sell-off is now beginning and his treasure chest is being plundered will be particularly bitter for Benko.
Because the first package contains projects that represent milestones in his career.
With the Golden Quarter, he was able to gain a foothold in the top real estate league in Vienna at just 27 years old.
The conversion of the Tyrol department store in his hometown of Innsbruck in 2010 was the first step into the retail business.
A lot has happened since then.
According to the “Standard”, Benko is said to have liked to say that only the Pope and the English royal family owned nicer properties than he did.
The difference is that the two venerable institutions never had to sell off their crown jewels.