DUESSELDORF (Reuters) -Central Group’s acquisition of the KaDeWe property in Berlin marks a strategic move amidst Signa’s insolvency. This purchase aligns with Central Group’s broader strategy to expand its presence in the luxury retail sector. The acquisition positions Central Group closer to potentially acquiring Signa’s entire portfolio.
Central expressed optimism on Friday about acquiring the entire KaDeWe Group, including Alsterhaus in Hamburg and Oberpollinger in Munich.
Central buys KaDeWe, already holding a 50.1% majority stake in the group.
Vittorio Radice, a board member of Central Group Europe, emphasized that acquiring the KaDeWe building marks a crucial milestone. He highlighted their commitment to restoring and restructuring the KaDeWe Group toward financial sustainability.
The insolvent Signa Prime, which owns shares in the KaDeWe luxury department stores, declined to comment.
The German business daily Handelsblatt reported the purchase price for the building, a popular tourist destination in Berlin, where Central buys KaDeWe at roughly 1 billion euros ($1.07 billion).
Central did not say how much it paid for the property.
Signa, the property empire founded by tycoon Rene Benko, has been one of the biggest casualties of Europe’s real estate crisis, with creditors filing claims worth billions of euros.
The group’s holding company, which sits at the centre of a web of hundreds of firms, has declared insolvency, as have its two most important units, Signa Prime and Signa Development.
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