ECE boss Alexander Otto sees positive developments for the real estate industry despite the Signa crisis. Sales in shopping centers are increasing.

ECE boss Alexander Otto sees positive developments for the real estate industry despite the Signa crisis. Sales in shopping centers are increasing.

According to a report by www.mopo.de, Alexander Otto, the head of the Hamburg real estate group and shopping center operator ECE, does not see any serious effects of the Signa crisis on his industry. Although the mood in the industry is already bad, Otto believes that Signa's problems will not have a significant impact as the real estate industry is very fragmented and Signa does not have a particularly high market share.

Signa Holding GmbH, whose restructuring process was applied for under self-administration, consists of a complex network of companies, which also includes Galeria Karstadt Kaufhof. Galeria is represented in five of the around 100 ECE shopping centers across Germany. Nevertheless, Otto reports that business in the ECE shopping centers has developed well in the current year, with sales that were around twelve percent higher than the previous year across Europe by the end of September. The Christmas business also got off to a good start.

Despite these positive developments, Otto expects that the real estate industry will continue to be under pressure in the coming year and does not expect any recovery until 2025.

The Signa crisis and the restructuring process could still have an impact on the real estate industry, especially with regard to the operators of shopping centers and the tenants in the properties. The unrest surrounding large retailers such as Galeria Karstadt Kaufhof could lead to uncertainty among investors and further pressure on sales in ECE shopping centers.

These developments show that even a seemingly isolated event like the Signa crisis can have an impact on the real estate industry, especially large real estate companies and their tenants. It remains to be seen how the situation will develop and what long-term consequences the Signa crisis will have.