The major Thai developer, Central Group, has taken over the property that is home to Berlin's iconic KaDeWe department store following an agreement with the previous, insolvent owner Signa Prime Selection, Central said on Friday.
The Thai group is also considered to be among the leading candidates bidding to fully take over the whole KaDeWe Group, including the retail business itself, according to trade experts.
Central currently holds a 50.1% stake in the group, while 49.9% belong to the Signa Group owned by Austrian businessman René Benko, which is in financial difficulties.
“We are pleased to add KaDeWe Berlin to Central Group’s historic flagship luxury store real estate portfolio," Central Group chief executive Tos Chirathivat said.
"The additional capital investment demonstrates our family’s commitment to the KaDeWe Group, our loyal customers, employees, and business partners in Europe," he said according to a press release.
"We will continue our efforts to find the best possible solution with all parties involved to allow our department stores to return to
normal operation – better and stronger than before, and as soon as possible.”
According to the statement, Central "remains in talks and ... is optimistic of reaching an agreement" to acquire further assets and begin "an orderly exit from the insolvency."
Until a few months ago, Signa owner Benko was considered a multibillionaire, with the US magazine Forbes estimating the 46-year-old's fortune at $6 billion at the beginning of 2023.
Since the end of December, however, a whole series of companies from Benko's Signa Group have filed for insolvency.
Benko's convoluted company empire has a portfolio of prestigious assets in Germany alongside KadaWe, including the Elbtower in Hamburg and the department store chain Galeria Karstadt Kaufhof, which is also insolvent.
