Signa crisis: René Benko's prestige properties on the market - bad time to sell

Signa crisis: René Benko's prestige properties on the market - bad time to sell

According to a report from amp2.wiwo.de, the insolvency administrator of Signa Holding plans to sell prestigious real estate holdings such as the Chrysler Building in New York. Benko properties are also expected to come onto the market in Germany in the future. This is happening at the worst possible time, as the real estate market is already suffering from rising interest rates and construction costs. The Boston Consulting Group (BCG) predicts a continuing crisis in the real estate industry in Germany. Business models with short-term sales are coming under pressure as interest rates have increased and construction costs have risen. In total, the ten largest German real estate companies will have to refinance around 5.7 billion euros in the coming year. Costs must therefore be drastically reduced as real estate companies are now confronted with many operational construction sites. The necessary restructuring is extremely complex and requires a lot of time. There is also a lack of management capacity and the insolvency of real estate companies could lead to the liquidation of properties if there are high discounts. All of these points could lead to a massive increase in refinancing costs and endanger the continued existence of indebted real estate companies. The Signa Group will therefore not be able to avoid real estate sales in the future.