Thai retail giant Central Group has reportedly acquired the iconic KaDeWe department store building on Berlin's Tauentzienstraße from struggling Austrian property group Signa.
According to German and Austrian press reports, the deal's value is estimated to exceed €1 bn, significantly lower than previous estimates.
Neither Central nor Signa have officially confirmed the deal or the price. Negotiations between the two companies were previously known.
Central Group had previously agreed to co-own the building with Signa, but that deal fell through. Back then, 50% of the property was valued at around €700 mln.
This deal might extend beyond the building itself. Central Group could potentially acquire the entire KaDeWe Group, which includes prestigious stores like Alsterhaus in Hamburg and Oberpollinger in Munich.
Central Group has held a controlling stake (50.1%) in the KaDeWe Group since 2015.
KaDeWe Group, now under Central Group, will expand its European presence. The group plans to open the first luxury department store in Vienna, "Lamarr," connected to the Thompson Vienna Hotel in Austria. Their second upcoming project is the revival of "Carsch Haus" in Dusseldorf, Germany. Both projects are scheduled to open in 2025.
Signa Group, along with its key units Signa Prime and Signa Development, faces billions of euros in creditor claims due to its insolvency. Earlier this week, the holding company withdrew its restructuring plan and applied to the Vienna commercial court to convert it into bankruptcy proceedings.
