René Benko’s collapsed European property empire comprising Signa Prime and Signa Development has begged investors for €350 million to fend off a crushing fire sale, according to a Financial Times report.
The distress call to shareholders was made just before the Christmas period in which administrator Erhard Grossnigg highlighted the immediate need for fresh capital to prevent further financial deterioration and to support the completion of ongoing projects.
He warned of the potential billions in losses if these projects are sold as incomplete constructions.
Signa Prime, in particular, is in urgent need of €300 million.
The company holds several high-value properties, including the under-construction Elbtower in Hamburg, luxury department stores in major German cities, and premium real estate in Vienna.
Significant assets such as the KaDeWe building in Berlin, have already been sold at huge discounts.
Reuters reported today that office furniture, building supplied and even toilet brushed have been put up for sale to recoup some of the billions lost through its collapse.
One of the richest men in Austria, Benko stepped down from Signa Holdings in November 2023 when the company went into receivership after failing to cover billions of euros in debt.