13-4-2024 (BERLIN) In a move that signals a significant expansion of its European footprint, Thai retail conglomerate Central Group has acquired the landmark KaDeWe property in the heart of Berlin from the insolvent Austrian company Signa. This acquisition, announced by Central Group on Friday, represents a crucial step towards the company’s broader ambition of acquiring the entire KaDeWe Group, which includes the prestigious Alsterhaus in Hamburg and Oberpollinger in Munich.
Central Group, a retail powerhouse with a diverse portfolio spanning department stores, shopping malls, and hotels, already holds a 50.1% majority stake in the KaDeWe Group. However, the acquisition of the iconic KaDeWe building in Berlin marks a significant milestone in the company’s efforts to consolidate its position within the German luxury retail landscape.
Vittorio Radice, a board member of Central Group Europe, expressed optimism about the ongoing negotiations, stating, “The acquisition of the KaDeWe building is the first important milestone for us in the attempt to restore and restructure the KaDeWe Group operating company towards a sustainable, financially viable business.”
The KaDeWe property, a landmark destination for both locals and tourists alike, has long been a jewel in the crown of Berlin’s retail scene. While the purchase price for the building was not disclosed by Central Group, the German business daily Handelsblatt reported that the transaction was valued at approximately 1 billion euros ($1.07 billion).
The insolvent Signa Prime, which owns shares in the KaDeWe luxury department stores, declined to comment on the matter, leaving the details of the deal shrouded in a veil of discretion befitting the high-stakes nature of the transaction.
Signa, the property empire founded by tycoon Rene Benko, has been one of the most prominent casualties of Europe’s ongoing real estate crisis. The group’s holding company, along with its two most significant units, Signa Prime and Signa Development, have declared insolvency, with creditors filing claims worth billions of euros.
Central Group’s acquisition of the KaDeWe property comes at a pivotal moment for the German retail landscape, as the industry grapples with the aftermath of the COVID-19 pandemic and evolving consumer preferences. The company’s deep pockets and extensive experience in luxury retail position it to breathe new life into the iconic KaDeWe brand, while simultaneously solidifying its presence in the heart of Europe.
As the negotiations for the acquisition of the entire KaDeWe Group continue, industry observers and analysts alike will be watching closely to see how Central Group plans to leverage its newfound assets and navigate the complexities of the German market. With its sights set on restoring and restructuring the KaDeWe Group’s operations, Central Group has signaled its commitment to preserving the legacy of one of Germany’s most iconic retail institutions while charting a course towards long-term financial sustainability.
