Now that central Signa companies have also gone bankrupt, the question is what will happen next to prestigious buildings such as the Elbtower in Hamburg and KaDeWe in Berlin. However, the people in the Hanseatic city are confident: the mayor of Hamburg does not want to keep the construction site of what will soon become the tallest building in his city idle for long.
“The likely variant is not that nothing happens for five years,” explains Mayor Peter Tschentscher, referring to a total bankruptcy of the Elbtower investor Signa. Maybe the private investors would find a solution and continue building – as they announced. “Even in an insolvency proceeding, the city would safeguard its contractual rights.”
The city would deduct five million euros from the original purchase price
This includes a right to buy back, which the city does not have to implement immediately. This leaves sufficient time to investigate the situation. “If we buy it back, we would repay the original purchase price of 122 million euros without interest and minus five million euros and in return we would get the property back.”
Following the bankruptcy of Signa Holding and several smaller companies, Signa Prime Selection AG, responsible for the Elbtower, applied for a self-management restructuring procedure on Thursday. According to the urban development authority, it is the indirect parent company of the previously insolvent buyer company of the Elbtower property, Hamburg Elbtower Immobilien GmbH & Co. KG.
The construction site has been at a standstill since October
The Elbtower in the east of Hafencity will be 245 meters high and will house offices, shops, galleries, restaurants and a viewing platform on the 55th floor. Completion is currently scheduled for 2025, with a total cost estimated at approximately €950 million. But the construction site has been at a standstill since October. According to the contracted construction company Adolf Lupp from Nidda in Hesse, Signa, which was in trouble, did not pay the bills. Signa itself initially did not want to say anything about this when asked.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
