Hamburg's construction senator threatens to demolish the Elbtower if construction progress does not progress

Hamburg's construction senator threatens to demolish the Elbtower if construction progress does not progress

According to a report by Bild.de, Hamburg's construction senator Karen Pein is threatening the Austrian billionaire René Benko with demolishing the Elbtower if he does not make rapid progress with the construction of the high-rise building. The property purchase agreement includes contractual penalties and repurchase rights for the city of Hamburg. If construction progress is not maintained, the city could dismantle the construction work that has already been carried out, sell it to a third party or complete the construction itself.

This threat from the Hamburg Senator for Construction is putting a strain on the real estate market in the region. The Elbtower is a controversial high-rise project on the Elbe bridges that is intended to reach a height of 245 meters. However, construction is currently on hold because René Benko and his Signa company apparently cannot pay the construction workers. If the high-rise building were to be demolished, this could result in a significant loss for everyone involved.

The construction senator is putting Benko and his backers under pressure to find a solution quickly. If this does not succeed, Hamburg could resell the unfinished building or complete it itself. However, a sale is currently viewed as unlikely and building one yourself is seen as political suicide. The only option left is demolishing the building.

There are currently further construction stops on other Benko projects in Hamburg, such as an office and commercial building on Gänsemarkt and the “Flüggerhöfen”. These problems could also affect the confidence of other investors in the Hamburg real estate market.

It remains to be seen how the situation surrounding the Elbtower will develop and what impact this will have on the real estate market in Hamburg. A ruined building in such a prominent location would certainly be a negative advertisement for the city and could deter potential investors. It remains to be hoped that a solution will be found to ensure the continued construction of the Elbtower and limit the damage to the real estate market in Hamburg.

Source: According to a report by Bild.de