The Thai retail giant Central Group has acquired the iconic KaDeWe department store property in central Berlin from the insolvent Austrian company Signa. This acquisition marks a significant step towards Central Group's goal of purchasing the entire KaDeWe Group, which includes luxury stores like Alsterhaus and Oberpollinger. Central Group, already holding a 50.1% stake in the KaDeWe Group, aims to restore and restructure the operating company. Signa, founded by Rene Benko, has been severely impacted by Europe's real estate crisis, with creditors filing claims worth billions of euros against the group.
The iconic KaDeWe department store property in central Berlin has been acquired by the Thai retail giant Central Group from the insolvent Austrian company Signa. This acquisition marks a significant step toward Central Group's ambition of purchasing the entire KaDeWe Group, which encompasses renowned luxury department stores such as Alsterhaus in Hamburg and Oberpollinger in Munich. Central Group already holds a 50.1% majority stake in the KaDeWe Group.
The KaDeWe property, spanning an impressive 650,000 sq. ft., is situated on one of Berlin's main shopping streets and has long been a major tourist attraction. Vittorio Radice, a board member of Central Group Europe, expressed optimism about the ongoing negotiations to acquire the entire KaDeWe Group, stating that the acquisition of the KaDeWe building represents "the first important milestone" in their efforts to restore and restructure the KaDeWe Group's operating company towards a sustainable and financially viable business model.
While the purchase price for the iconic Berlin property was not disclosed by Central Group, the German business daily Handelsblatt reported it to be around EUR 1 billion (USD 1.07 billion). Signa, the property empire founded by Austrian 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 center of a web of hundreds of firms, has declared insolvency, as have its two most important units, Signa Prime and Signa Development.
This acquisition by Central Group represents a significant milestone in their efforts to expand their global retail footprint and solidify their position in the European luxury retail market. The acquisition of the iconic KaDeWe property, coupled with their existing majority stake in the KaDeWe Group, positions Central Group as a formidable player in the luxury department store sector.
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