Outstanding payments are in the millions: The owner of the property reports that it has taken control of the world-famous building.
In 2019, the purchase of the Chrysler Building was intended to symbolize the international flight of the Signa Group. By 2024, there will be little left of René Benko’s financially ailing conglomerate – and now Christof Stapf, the curator of Signa Holding, may have to care for the world-famous New York City building even more intensively than feared.
Because: Benkos Signa acquired the monumental skyscraper in Art Deco style more than five years ago together with the American partner RFR. However, only the building; not the land it stands on. That’s why the purchase price at the time was in the low triple-digit million range.
Now the media “CoStar News” reports that the private university Cooper Union, which owns the property, has taken control of the Chrysler Building. According to Cooper Union’s chief financial officer, RFR has owed $21 million in lease payments for the property since May. This prompted the landowner to send a termination letter to RFR.
RFR is defending itself against this in a New York court: it has invested more than $150 million to prevent the building, “a landmark of the New York skyline”, from “deteriorating and falling into disrepair.” Cooper Union, on the other hand, increased the lease for the property from $20.1 million in 2018 to $32.5 million for the years 2019 to 2027. As much as 41 million should be due in 2028.
It is still unclear what impact the turbulence in New York will have on Signa Holding’s bankruptcy proceedings. Curator Christof Stapf had always emphasized that he wanted to sell his share in the Chrysler Building as quickly as possible in the interests of the many creditors. According to reports, the sales process had already begun.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
