Planning for Signa projects at Hermannplatz and Ku'damm has been halted by the Senate
In a significant turn of events, the Austrian real estate conglomerate Signa has filed for insolvency. This development has led to a temporary halt in plans for new construction projects on the Karstadt properties at Hermannplatz and Kurfürstendamm in Berlin.
The high-rise project on the Karstadt site on the Kurfürstendamm was slated to feature two towering structures, each reaching a maximum height of 120 meters, as determined by the Senate Department for Urban Development. Predominantly commercial spaces were to be created in these new buildings, with a total of 5,000 square meters reserved for residential use and other non-commercial uses.
However, the future of these planned renovations and constructions remains uncertain. The Berlin Senate has taken a cautious approach, confirming that no further steps will be taken in both procedures for the time being. The district of Friedrichshain-Kreuzberg has even demanded a planning stop at Hermannplatz and that the planning rights should return to the district.
The Left party has gone a step further, demanding that cooperation with Signa should be ended immediately and the properties and department stores should be transferred into public ownership. Meanwhile, the district of Charlottenburg and Neukölln have other Signa projects in the pipeline, details of which can be found on the provided links.
Signa is aiming for a self-managed restructuring, but high construction costs and expensive loans have been cited as the primary reasons for their financial woes. The sale of the high-rise project "MYND" on Berlin's Alexanderplatz to the fund company Commerz Real was the first sign of these financial difficulties on the German real estate market.
The historical photo of the 1945 destroyed Karstadt building on the Hermannplatz from the year 1936 is available on Wikimedia Commons, offering a stark contrast to the modern redesign visualized by Signa Real Estate and Henning Larsen Architects, which shows how the entrance of the U-Bahnhof Kurfürstendamm would look.
As for the projects that have already begun, some are likely to be sold to other real estate developers and further developed. For instance, the construction of the Hamburg Elbtower has been halted due to Signa's inability to pay.
For the projects that have not yet begun, it is difficult to make a meaningful prediction. The situation is fluid, and the outcome will depend on Signa's restructuring efforts and the interest of potential buyers. As we wait for more developments, the future of these projects hangs in the balance.
