Graduate economist Nikolaj Schmolcke (58) is a complete professional. The business graduate was, among other things, head of finance at Lufthansa and Vapiano. Hamburg residents read complicated corporate financial statements like local guests read a restaurant menu: “They are a treasure trove of truth, lies, hopes and disappointments,” says Schmolcke about often opaque balance sheets.
The “Münchner Abendzeitung” presented the economist with consolidated financial statements of Signa Holding GmbH and Signa Prime Selection AG from the house of the Tyrolean real estate zampano Rene Benko (46). His empire has collapsed like a house of cards – as eXXpress has reported several times. After Austria’s largest real estate bankruptcy, Signa not only left behind a heap of shambles, but also at least five billion euros in liabilities.
The fact that things went well for Benko and his investors for so long was probably due to the companies’ incredible accounting tricks. They could have been recognized in good time, but they didn’t have to, as long as the ruble was rolling. And it even rolled into Benko companies that, on paper, made significantly more profit than sales.
This was the case with Signa Prime Selection, for example: it recorded sales of 438 million euros in 2021 and reported an impressive profit of 732 million euros. This was made possible by the valuation of the properties. In short, Benko made an estimate of what he could achieve for them in the future. “The higher valuation then shows profits,” says Schmolcke. In the year 2021 alone, Benko’s real estate portfolio was increased by over one billion euros.
According to Schmolcke, this only worked because Prime Selection did not report according to the German Corporate Code (UGB), but rather according to International Financial Reporting Standards (IFRS). According to them, real estate can be valued higher than its acquisition cost.
In 2022, Prime Selection AG had current assets of 686 million euros, offset by short-term liabilities of 2.7 billion euros. In 2021, this shortfall was still 1.4 billion euros: “According to its cash flow statement, this did not stop Prime Selection from paying out 225 million euros in dividends,” said expert Schmolcke to the “Abendzeitung”.
“Benko valued the properties highly, thereby showing profits, becoming attractive to investors and collecting money from banks. And then Prime Selection paid out 225 million in winnings,” said Schmolcke. The lenders took this risk. “It depends on the willingness to go along with it. The creditors accepted that,” says the Hamburg economist.
He was almost incredulous about the risks that Benko had always taken: “That was a casino, that was gambling,” he claims. The Tyrolean real estate tycoon had a loan volume of 6.7 billion euros with 3.6 billion euros with variable interest rates. Suddenly interest rates rose and costs exploded. One percentage point higher interest corresponded to 36 million euros – per year. If interest rates rose by over three percent, as they did recently, this corresponded to over 100 million euros per year – additionally.
2023-12-17 17:26:37
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