Benko bankruptcy: Hamburg's real estate under pressure - Elbtower on the verge of collapse?

Benko bankruptcy: Hamburg's real estate under pressure - Elbtower on the verge of collapse?

The bankruptcy of the Austrian real estate entrepreneur René Benko continues to spread in Hamburg. The charges against Benko for financial manipulation could have a significant impact on the city's redevelopment. Signa Holding, to which Elbtower Immobilien GmbH & Co. KG belongs, has filed for bankruptcy, which also affects the mammoth Elbtower project. Loud daily news Construction has been on hold since October 2023 and the authority for urban development and housing in Hamburg has confirmed the bankruptcy filing. In Hamburg, where seven properties with billion-dollar mortgages are in the land register, only the Elbtower remains unsaleable.

The city is reacting to the situation and Finance Senator Andreas Dressel (SPD) emphasizes that the situation in Hamburg has been dealt with well. Nevertheless, there are concerns about the impact on the cityscape, as sell-offs of three central properties in Hamburg's city center have already been initiated. These sales, which include the Kaufmannshaus and the Alsterarkaden, are expected to increase the investment volume by 400 million euros in the fourth quarter Development city reported.

Real estate sales and new projects

A number of investors are snapping up the properties: The London asset manager Attestor has put around 165 million euros on the table for the merchant's house, which was built in 1905 and has a gross floor area of ​​24,000 square meters. Interestingly, Signa acquired the building in 2017 for 1.5 billion euros, but has not yet completed the renovation work. NDR points out that Hamburg investor Harm Müller-Spreer would like to invest an additional 130 million euros in the Alster arcades.

News is also emerging at the Gänsemarkt, where Hansemerkur Versicherung recently celebrated the groundbreaking ceremony for a new project. An eight-story office building is to be built there by the end of 2028, which promises a modern use of the area. There are plans for the central library and the adult education center to move to a building on Gerhart-Hauptmann-Platz. This could further enrich the cultural offerings and enhance the district.

The Elbtower: An uncertain fate

While the rest of the real estate landscape is thinking about selling, the Elbtower remains in focus. The original plan was for this building to be the third tallest skyscraper in Germany with a height of 245 meters. The city of Hamburg has a right of repurchase secured by a purchase agreement and can take over all planning and construction contracts if a private-sector solution to resume construction work cannot be found, reports daily news.

The urban development senator Karen Pein emphasized that one's own rights would be secured. However, it remains to be seen whether this will be enough to realize the dream ideas of the Elbtower in HafenCity. The outlook is currently rather bleak, especially since construction work on the Elbtower has come to a standstill due to Signa's payment problems.

Overall, the situation in Hamburg remains tense. Nevertheless, the city is following well-founded considerations to increase infrastructure and take advantage of new opportunities. While concerns about the real estate landscape continue, the Hamburg real estate market seems to be adapting to innovations and changes.