Thailand’s Central Group has purchased the iconic KaDeWe property located in central Berlin from the insolvent Austrian firm Signa, marking another stride in its endeavor to acquire the entire group.

Central Group announced the acquisition on Friday, expressing optimism about ongoing discussions to obtain the complete KaDeWe Group, which encompasses Alsterhaus in Hamburg and Oberpollinger in Munich. Presently, the Thai retailer holds a 50.1% majority stake in the group.

Vittorio Radice, a board member of Central Group Europe, described the acquisition of the KaDeWe building as a significant initial milestone in their efforts to revitalize and restructure the KaDeWe Group operating company into a sustainable and financially viable business.

Signa Prime, the insolvent entity that holds shares in the KaDeWe luxury department stores, declined to comment on the matter.

The purchase price for the building, a popular tourist destination in Berlin, was reported by the German business daily Handelsblatt to be around 1 billion euros ($1.07 billion). However, Central Group did not disclose the amount it paid for the property.

Signa, founded by tycoon Rene Benko, has faced substantial setbacks amidst Europe’s real estate crisis, with creditors filing claims worth billions of euros. The group’s holding company, along with its two key units, Signa Prime and Signa Development, have all declared insolvency, underscoring the magnitude of the challenges faced.

Source: Reuters

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