The Rise and Fall of Klaus-Michael Kühne’s Investments in Signa Prime
Klaus-Michael Kühne, a logistics entrepreneur, reflects on his investment in the Signa Group by René Benko, revealing that he lost nearly half a billion euros – almost their entire stake. In an interview with the “Frankfurter Allgemeine Zeitung,” Kühne lamented that shareholders would be left with little as creditors had precedence.
The Investment in Signa Prime
Kühne invested in Signa Prime, where Benko consolidated his prime real estate assets, including the Park Hyatt Hotel in Vienna, luxury department stores, and the Elbtower in Hamburg. The Global Real Estate properties in Switzerland were also part of this structure.
Initially a key financier of the failed Austrian real estate magnate, Kühne now admits to being swindled by Benko. He expressed regret at being misled by false information and painted a rosy picture of the investments, only realizing the shaky financial foundations later on.
A Year Before the Collapse
Benko leveraged established investors like Kühne to attract further funding for his projects. Kühne’s substantial wealth, valued at 35 billion euros, from holdings such as Kühne + Nagel and a significant stake in Lufthansa, made him a valuable asset.
Despite increasing his stake in Signa Prime in 2022, Kühne grew wary of the complex financial web Benko had woven, leading to a breakdown in their relationship a year before the final collapse of Signa.
Interest in the Elbtower in Hamburg
While Kühne does not anticipate immediate returns from the sale of Signa assets, he remains realistic about the situation. The Austrian Supreme Court’s decision to proceed with a regular insolvency process, rather than the planned trust model, has complicated matters.
The appointed administrator has acknowledged claims totaling around 6 billion euros, challenging the feasibility of the initially promised 30% payout to Signa Prime’s creditors.
Despite the challenges, Kühne retains interest in the Elbtower project in Hamburg, envisioning it as Germany’s third tallest building. However, significant additional investment is required to resume construction, necessitating collaboration among multiple investors, with Kühne prepared to contribute a quarter of the required equity.
FAQs
What led to Klaus-Michael Kühne’s loss in Signa Prime investments?
Kühne cited being misled with false information and realizing the unstable financial structure behind Benko’s projects as key factors contributing to his significant losses.
What are Kühne’s future investment plans?
Despite the setback, Kühne remains interested in the Elbtower project in Hamburg but acknowledges the challenges ahead, requiring substantial additional funding from multiple investors.