(Clarified on 4 December to state that Central Group became majority shareholder of operating companies within the Selfridges Group in 10th paragraph)
Signa Holding has filed for insolvency under self-administration.
The process is similar to Chapter 11 in the US and protects the company from creditors as it seeks to keep going and restructure at the same time. The company, founded by Austrian entrepreneur René Benko, is the ultimate owner of a €27 billion property portfolio and €25 billion development pipeline. The list of potential victims features some well-known names and very famous buildings. Due to the company’s complicated and opaque structure, the list is likely to be longer.
In 2019, Madison Realty acquired a 5% equity stake in Signa Prime Selection AG, a €12.5 billion European real estate portfolio comprising 27 trophy properties and development projects, as well as the 60 asset Kaufhof real estate portfolio, from majority owner Signa Holding GmbH. A year later, Madison increased its stake by 2.2%.
Other investors in Signa Prime include German sovereign wealth fund RAG-Stiftung, R+V Insurance Group and the Peugeot family.
Peugeot Invest bought a 5% stake in Signa Prime Selection in June 2019 for €186 million from Signa Holding. It invested another €25 million three months later. A year later, it invested a further €10 million as part of a €750 million capital increase.
Peugeot Invest also bought a 5%stake in Signa Development for €75 million in June 2021, from Signa Holding. Peugeot invested another €10 million as part of a €200 million capital hike in May 2022.
Peugeot last week reportedly wrote down the value of its Signa investments by 50%.
R+V Versicherung provided Signa with a €250 million loan for 99 years secured against a property in Vienna. R+V also took part in a €1.2 billion capital hike in 2019. It declined to comment when asked by CoStar News about its total exposure to Signa.
RFR Holding is Signa’s joint venture partner on two separate deals. In New York, the investor and Signa bought the Chrysler building for a reported $150 million in 2019. A year later, the two teamed up again to buy two properties from Allianz Real Estate, Opernplatz 2 in Frankfurt and Beursgallerij in Rotterdam.
Last week, Central Group became the majority shareholder of the joint venture company it owned with Signa for the operating companies within the Selfridges Group. The Thai investor gained control through a debt-for-equity swap. Central and Signa bought the group of department stores, which includes Selfridges in London and De Bijenkorf in the Netherlands, from the Weston family two years ago for almost £4 billion.
Private individuals also have stakes in Signa Holding. Bloomberg named Austrian construction tycoon Hans Peter Haselsteiner and German transportation magnate Klaus-Michael Kühne and Swiss businessman Arthur Eugster.
Analysts at JPMorgan estimated that Signa owes round €13 billion to banks and investors. Citing three people familiar with the Austrian company, the Financial Times reported that Swiss bank Julius Baer is an important lender to Signa.