View of the construction site of the Elbtower building, owned by Rene Benko’s Signa and a Commerzbank subsidiary, in Hamburg Germany, November 2, 2023.
On Friday, Signa Real Estate Management filed for insolvency in a local court in Berlin, according to a court filing.
The real estate sector was a bedrock of Germany's economy for years, accounting for roughly a fifth of output and one in 10 jobs.
Now a sharp rise in rates has put an end to the run, tipping some developers into insolvency as deals freeze and prices fall.
Weakness in commercial real estate in the United States as offices remain empty after the pandemic and the struggles of major property developers in China have focused global attention on the sector.
Persons:
Rene Benko’s Signa, Fabian Bimmer, Signa, Elliott, Rene Benko, Switzerland's Julius Baer, Hannes Moesenbacher, Matthias Inverardi, John O'Donnell, Miranda Murray, Sharon Singleton, Mark Potter
Organizations:
REUTERS, Rights, Elliott Investment Management, Chrysler, Estate Management, Austria's Raiffeisen Bank, Thomson
Locations:
Hamburg Germany, Austrian, Germany, Austria, Switzerland, Sweden, Berlin, Bavaria, Hesse, Hamburg, Europe's, United States, China