Signa, led by Rene Benko, faces insolvency amid Europe's real estate crisis. Its subsidiary, Signa Prime, owns prized assets like Vienna's Park Hyatt Hotel and Golden Quarter. It has now sold Venice's Hotel Bauer to Schoeller Group. The deal is subject to bank and antitrust approval, and the deal is expected to close in months. Schoeller Group, a German family business, spans packaging and property sectors. The Bauer, owned by Signa since 2020, is undergoing renovation and will reopen under Rosewood Hotel Group's management next year.
The luxury Hotel Bauer in Venice, owned by Signa Prime Selection, has been sold to the prominent German Schoeller Group. This sale represents a significant strategic move for Signa amid turbulence in the real estate market.
Signa, the conglomerate established by Rene Benko, and its subsidiary Signa Prime is facing claims worth billions from creditors as real estate values decline across Europe. In this difficult environment, offloading the prestigious Hotel Bauer can help alleviate financial pressures.
The Hotel Bauer, acquired in 2020 and currently undergoing renovations, was one of Signa Prime's most valuable assets. It will now be managed by Rosewood Hotels upon reopening. This transaction was one component of a larger deal between Signa Prime and Schoeller Group incorporating two additional Italian properties.
While financial details were not disclosed, the sale is contingent on regulatory approvals and expected to close within months. It aligns with Schoeller's expansion into hospitality alongside packaging and real estate within its diverse portfolio, overseen by the family for seven generations.
Prior to the Schoeller agreement, Signa Prime discussed other potential sales last month, such as the Park Hyatt Vienna and surrounding "Golden Quarter". Prolonged negotiations indicate a complex decision-making process as the company navigates its challenges through strategic asset optimization.
Divesting the Hotel Bauer thus serves as an important step for Signa Prime amid the parent company Signa's restructuring efforts facing a difficult commercial real estate environment in Europe.
Advertisement
Facebook
Whatsapp
