Image: APA/HANS KLAUS TECHT
The construction of the prestigious Elbtower property in Hamburg is stalling and the Lupp construction company has stopped work, the “Hamburger Abendblatt” and “Bild” reported on Friday. The building owner, Signa Prime Selection, did not pay on time, according to the daily newspapers.
The Elbtower is supposed to be 245 meters high, the shell is currently around 100 meters high. However, the managing director of the shell construction company, Matthias Kaufmann, reassured the “Hamburger Abendblatt”: “As things stand, we assume that construction site activity can be resumed in a timely manner.” Discussions are being held with both Signa and Commerz Real, a subsidiary of Commerzbank. The ongoing construction costs are expected to amount to 25 million euros per month, and the total costs are estimated at one billion euros.
No comment from Signa
The contracts with the Elbtower company were negotiated by the municipal Hafencity company under the current German Chancellor Olaf Scholz as mayor of Hamburg.
Signa is currently selling the Hamburg Flüggerhaus on Rödingsmarkt and stopping the construction of the Gänsemarktpassage in the Hanseatic city. A lack of office tenants is said to be the reason for the interruption of construction activity.
Signa did not initially comment on the Elbtower project when asked by APA.
Signa is hit hard by the downturn in the real estate market
The downturn in the real estate market is hitting Signa Holding around Benko hard. The holding company’s loss in the previous year amounted to around 505 million euros, reports the news magazine “News” in its current edition, with reference to the 2022 annual financial statements, which have not yet been published. This was disclosed in the commercial register – via the minutes of the general meeting on July 13, 2023 – now also the annual financial statements of Signa Prime Selection AG for 2022. As the APA already reported, the company posted a net loss of over one billion euros due to high devaluations on the real estate business, after an increase of 732 million in 2021. The German Restructuring expert Arndt Geiwitz has recently started advising Signa Holding. A spokesman recently announced that Geiwitz received a corresponding order a few days ago.
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Source: Nachrichten
