Signa Group on the verge of collapse: financial expert gives the all-clear for investors

Signa Group on the verge of collapse: financial expert gives the all-clear for investors

According to a report by www.rnd.de,

When a loan cost almost nothing, people occasionally asked themselves: What would happen if interest rates rose one day? René Benko and his Signa group were a plausible tip, and that's how it happened. One of the continent's great real estate empires is crumbling and could collapse within days.

As dramatic as the events surrounding the Benko empire are, its collapse would cause waves, but it would not trigger a tsunami. This applies to the next existential crisis of the Galeria department store chain as well as to Signa's investors. Some are threatened with severe losses, but as things stand there is no systemic risk.

Some will make a lot of money from this crisis

However, there are many small Benkos around the world who have turned the big wheel with cheap money. Investors of all stripes jumped on board - big names at Benko like Roland Berger and Klaus-Michael Kühne. They were happy to take profits and wake up when it was too late.

Now everyone calculates their individual risk and weighs up whether bankruptcy is a better or worse solution for them. Because of the inscrutable construct with hundreds of project-related companies, the result is difficult to predict.

However, one can make a prediction: Some people will make a lot of money from this crisis. Because Signa projects are often among the better in the real estate world. Whether a rescuer steps in, emergency sales are necessary or an insolvency administrator sells off concrete gold: If you have good nerves, you can get a good deal. Hedge funds and rich private investors have long been circling around the loot and waiting for their bargain.

It is important to recognize that the possible collapse of Signa Group will bring some unrest to the industry, however this will most likely not have an impact on the entire real estate system. Nevertheless, individual investors and funds are likely to take advantage of the emerging situation to benefit from potential fire sales.