The Berlin Senate wants to continue planning for construction projects by the ailing Signa Group such as Neukölln’s Hermannplatz despite the company’s financial problems.
“We are monitoring the development at Signa very closely,” said the spokesman for the Senate Department for Urban Development and Housing, Martin Pallgen, on Thursday. “We have an urban planning interest in the development of the various projects, which also involve a lot of jobs.” Several media outlets had previously reported on it.
According to a report in the “Tagesspiegel”, the struggling real estate group Signa, which was founded by the Austrian real estate entrepreneur René Benko, has stopped all construction projects in Berlin. These include the Karstadt locations on Hermannplatz and in Wedding as well as the “Glance” project on Franklinstrasse (Charlottenburg). The “Tagesspiegel” referred to corporate circles in its report on Wednesday.
For reasons of urban development and to secure the department store locations, the building administration will not stop the planning of the development plan for Hermannplatz and the framework plan for the Kurfürstendamm/Rankestrasse/Augsburger Strasse area, spokesman Pallgen continued. “Anyone who calls for this is accepting that important projects for the development of Berlin’s centers and numerous jobs are being put at risk.”
Signa announced in Vienna on Wednesday that founder Benko was withdrawing from leadership of the troubled group. Similar to many companies in the real estate industry, Signa is struggling with increased interest rates and higher material costs. Signa is building the 245 meter high Elbtower in Hamburg. The group also includes the department store group Galeria Karstadt Kaufhof, which has already gone through two insolvency proceedings.
MPs are calling for a stop to projects like those at Hermannplatz
The spokesman for urban development for the Green parliamentary group, Julian Schwarze, demanded on X (formerly Twitter) that the Senate must stop the development plan procedures on Ku’damm and Hermannplatz. “The city must not become dependent on questionable business models.” Left-wing MP Katalin Gennburg also called for this in the “Tagesspiegel”. The spokesman for the urban development and building administration countered: “We do not develop desired development plans for investors, but rather determine the necessary uses at the respective locations.”(dpa)