Signa to sell luxury Vienna landmarks to break debt impasse

SIGNA’S flagship property unit is close to an agreement to sell a portfolio of luxury Austrian assets to Germany’s Schoeller Group, according to sources familiar with the matter.

A deal may help Signa Prime Selection resolve a deadlock in its broader restructuring related to a previous loan deal with Schoeller. It would also be the first major transaction with property held by Rene Benko’s troubled empire since its insolvency at the end of last year.

The family investment office of the packaging and logistics dynasty has emerged as the buyer of a portfolio of properties, which include the Golden Quarter luxury store complex and the Park Hyatt hotel in Vienna, three sources familiar with the deal told Bloomberg.

Representatives for Signa Prime and its insolvency administrator declined to comment. The Schoeller Group did not respond to a call seeking comment.

While Signa Prime had initially attracted interest from 37 bidders for the assets, selling to the Schoeller Group may help resolve a standoff with the German industrialist family, two of the sources said, asking not to be identified discussing private information.

The Schoeller Group and Signa’s representatives have been negotiating claims related to a 200 million euro (S$291 million) loan deal signed last year, Bloomberg previously reported. Those claims – though questioned by the insolvency administrator – have been an obstacle to raising fresh funds as they are underpinned by a broad range of Signa’s German assets, limiting their sale.

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Signa Prime will present the potential deal to creditors for their approval in a meeting on Monday (Mar 11), two of the sources said.

Efforts to present a viable restructuring plan are gaining traction ahead of a vote by creditors planned for next week. A majority of them need to sign off on a strategy that offers to pay back at least 30 per cent of claims within two years.

Part of the plan may involve handing over the management and utilisation of properties to a trustee, two of the sources said.