“Bloomberg” report – Benko’s Signa Prime needs two billion euros

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The shaky Signa Group is examining its funding sources. According to Bloomberg, René Benko’s main real estate division, Signa Prime Selection, is now trying to raise fresh money from investors. The company is therefore turning to investors to raise up to two billion euros in the coming months.

The financial news agency ‘Bloomberg’ quotes people familiar with the matter in its report.

For the duration of the restructuring, German restructuring expert Arndt Gvezelz will “take responsibility for the interests of the Benko family’s private foundation,” a Signa spokesman said on Thursday. It is not possible to estimate at this time how long this restructuring will take. “The most important thing is: the process requires peace and focus.” Gietenz wants to present an initial plan at the end of November.

Renovator must “stabilize Signa in the long term”
Under the leadership of Groeiz, in collaboration with the new CRO (Chief Restructuring Officer) Ralf Schmitz, “numerous organizational, structural and personnel processes were initiated that serve to support and stabilize the Signa Group sustainably and in the long term.” This includes both the real estate sector and the commercial sector.

“These ongoing, highly responsible conversations with stakeholders give us confidence that we will find good solutions,” the spokesperson confirmed the ongoing negotiations.

This year, 500 million euros are needed
The Signa Prime division, which owns the most prominent projects from Berlin’s luxury department store KaDeWe to Selfridges in London and Hotel Bauer in Venice to the Elbtower construction project in Hamburg, has told potential investors that it will invest 500 million euros this year alone According to Bloomberg, the insiders are involved in the talks and do not want to be named. Another 1.5 billion euros would be needed in the first half of 2024.

It is also said that some of the investors approached have already declined. However, others are still in the early stages and are currently investigating the request.

“Bloomberg” lists the larger parts of the maturities in detail with reference to the annual report: a privately placed signa Prime bond worth 200 million euros must mature no later than November 30. According to the information, participation certificates with a nominal value of 130 million euros expire on December 31. “In addition, the company likely has obligations from project loans and construction work.”

Rising interest rates and falling real estate valuations have led to liquidity bottlenecks at Signa. Work has come to a standstill at various construction sites. Various parts of the Signa Group have already sold properties, company shares and industrial sites during the year.

Signa recently reduced its stake in the British luxury department store chain Selfridges. Thai co-owner Central Group is now said to be the majority shareholder and has taken control of the retail chain, Reuters reported on Wednesday. Signa is reducing Selfridges’ stake to 45 percent, a person familiar with the matter confirmed.

Source: Krone

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