Insolvency Administrator Seeks Buyer for Hamburg Elbtower

In search of a buyer for the Hamburg prestige project Elbtower, the insolvency administrator Torsten Martini is now stepping in. In view of the financial difficulties encountered by Signa, the sought-after but still incomplete high-rise at the edge of Hafencity is to be sold. The sale process, scheduled to commence in mid-March, was confirmed by Martini to the German Press Agency. The global real estate company CBRE has already been engaged to assist in the search for investors. The restructuring expert Martini aims to sell the Elbtower "as quickly and expensively as possible," as any pause at the construction site causes additional costs – a common approach in insolvency proceedings to maximize the debtor's assets for the benefit of creditors. Martini remains silent on a specific price, arguing that the market value will be determined through the sales process. Elbtower Immobilien GmbH & Co. KG, which belongs to René Benko's fluctuating Signa Group, had already initiated insolvency proceedings in January, subsequently forcing Benko to file for insolvency as well. The exact level of the Elbtower company's debts to creditors is currently unknown. Creditors are to be invited to submit their claims after the opening of the proceedings, which will then be reviewed. The city of Hamburg views the Elbtower as a private sector project and therefore expects a private sector solution to complete the construction. If no such solution is found, the city could take control of the project, based on a contractually agreed buyback right with Signa. There is political resistance from the Left in the Hamburg Parliament, which points out that the original purchase contract prohibits resale within a year after completion unless the Senate approves it. Heike Sudmann from the Left appeals to the Senate to refrain from consenting to speculative sales or inflated prices. Her goal is to prevent short-term problem shifting in the context of the upcoming parliamentary election in 2025. This skyscraper, designed as a masterpiece by David Chipperfield, is intended to mark the eastern end of Hafencity with its 64 floors and a height of 245 meters and to house various facilities. However, the construction site, which was supposed to be completed by 2025 for around 950 million euros, has been abandoned since the end of October.