Hamburg Elbtower skyscraper builder files for insolvency
After the construction of one of Germany's tallest buildings suddenly came to a halt in October, the owner of the Elbtower property, Elbtower Immobilien, has filed for insolvency, the city of Hamburg said on Friday.
The insolvency allows the city to assert its repurchase right and take over all planning and construction contracts, the city development authority said.
The construction site has been at a standstill since the end of October 2023 because the contracted construction company's invoices had not been paid.
Once completed, the skyscraper located near the HafenCity area is expected to be 245 metres high and is set to be the crowning glory of Hamburg's HafenCity.
It is to be built in the east near the Elbe bridges, as a kind of counterpart to the Elbphilharmonie in the west: "64 storeys, 245 metres above the sea. A new view of the city," says the Elbtower website.
Germany's third tallest building, designed by London star architect David Chipperfield, is to one day house offices, shops, galleries, restaurants and a viewing platform on the 55th floor.
Elbtower Immobilien is an indirect subsidiary of Austrian real estate and retail mogul René Benko's Signa Group, which is also already insolvent.
Benko had taken out cheap loans during the low-interest phase, attracted financially strong investors and thus greatly expanded his Signa Group.
However, the recent rise in interest rates, construction costs and energy prices have put his complex network of companies in a precarious position.
According to the Hamburg development authority, it is assuming that a private-sector solution will be found as part of the insolvency proceedings for the prompt resumption of construction activities.
However, significant changes to the overall project could only be made in agreement with the city.
The planned completion date for the Elbtower building is set for 2025 with total costs of about €950 million ($1.03 billion).
