Signa Development Faces Capital Increase and Losses in Latest Report

According to the current balance sheet, Signa Development also received a capital increase.

Since Friday, René Benko’s disempowerment has been discussed at Signa. Some co-owners had hoped that the German renovator Arndt Geiwitz would take over the helm on Monday. But apparently the surrender of all of Benko’s powers is still pending.

Meanwhile, another business report from a Signa subsidiary is now available. Signa Development, like the Signa Prime subgroup, is in the red. After a profit before tax of 386 million euros in 2021, a negative profit before tax of 380 million euros had to be reported in 2022 as a result of devaluations. The Signa company received a capital injection of EUR 200 million in May 2022. The operating cash flow of 24 million euros was offset by loan repayment obligations of 401 million euros. This gap was essentially closed through the capital increase and the sale of real estate. Figures for 2022 for the Signa Prime Selection were previously published. Accordingly, the company has to repay loans and other liabilities of 2.2 billion euros this year.

Meanwhile, the “FAZ” reported that Signa lost the contract for the Mynd high-rise on Berlin’s Alexanderplatz. The Commerzbank fund company terminated Signa Real Estate.