Hamburg’s urban development senator Karen Pein (SPD) has referred to possible contractual penalties following a construction interruption on the Elbtower. “The city of Hamburg expects that the construction project will be completed in accordance with the deadlines and qualitative characteristics agreed in the purchase contract,” said Pein on Monday. According to the authority, project developer Signa Real Estate has confirmed a construction interruption in the shell of the Elbtower.
Pein spoke of a project at the risk of the private investor. “If construction work can be resumed promptly, as Signa has promised, construction progress will still correspond to the schedule agreed in the purchase contract.” If agreed milestones for construction progress are not met, contractual penalties are initially agreed in the property purchase agreement and then repurchase rights for the Hanseatic city with regard to the property are agreed.
In addition, extensive entry rights into the existing planning and construction contracts have been agreed, said Pein. “This enables the city of Hamburg, among other things, to dismantle the construction work that has been carried out so far, to sell it to a third party for completion or to complete the construction itself.”
The Elbtower will be 245 meters high with 65 floors. This makes the building, designed by the office of star architect David Chipperfield, the third tallest high-rise in Germany after the Commerzbank Tower and the Messeturm in Frankfurt. According to previous information from Signa Real Estate, the skyscraper is expected to cost 950 million euros. Signa Real Estate belongs to the Signa Holding of the Austrian billionaire René Benko, which is also known in Germany as the owner of the Galeria Karstadt Kaufhof department store chain. (dpa)