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Signa logo in Vienna: "Insolvent in the near future"
Photo: Alex Halada / IMAGO
The company network Signa of the Austrian investor René Benko is in danger of collapsing further. According to a press release from Signa Development Finance in Luxembourg, further insolvencies are on the horizon.
As the issuer of a 300 million euro bond, it said that it was likely that the issuer, Signa Development and other companies of the Signa Development Group would file for the opening of insolvency proceedings "in the very near future". The filing of such applications is a reason for termination under the terms of the bond, it says.
In the Signa Development, René Benko's Signa Group collects the buildings that are still to be developed and built and are to be sold later. In view of the sharp rise in interest rates and, most recently, the rise in construction costs, it is one of Signa's weakest divisions.
In contrast, the sister company Signa Prime brings together the more valuable buildings, such as the KaDeWe in Berlin, Oberpollinger and Alte Akademie in Munich, Elbtower and Alsterhaus in Hamburg, or Park Hyatt and "Goldenes Quartier" in Vienna. According to insiders, the management of Signa Prime is preparing for insolvency under self-administration.
Signa Prime and Signa Development are under Signa Holding, which is already in debtor-in-possession insolvency proceedings. The nested Signa Group is the biggest victim of the turbulence on the real estate market so far.
In addition to higher interest rates, real estate companies are also struggling with higher construction costs and the absence of large real estate transactions.
hba/dpa/Reuters