New Bankruptcy in the Signa Group: Signa Development Icon GmbH Will not be Continued
The economic turbulence surrounding the Signa Group shows no sign of abating. The creditor protection association Creditreform announced that Signa Development Icon GmbH has filed for bankruptcy proceedings, which will not be continued in the future. "The Icon Vienna" houses prominent companies and diplomatic missions and is a subsidiary of the Signa Development Selection AG, which had previously filed for insolvency.
"The Icon Vienna" houses prominent companies and diplomatic missions, including BAWAG, TPA, L'Oréal, Nestlé, Nespresso, Ferring, Procter & Gamble, Australia, New Zealand embassies, and European Union delegation. / Picture: © Wikimedia Commons; User:Geolina163, CC BY-SA 4.0 DEED (https://creativecommons.org/licenses/by-sa/4.0/deed.en)
Significant properties in Signa Development Icon GmbH's portfolio include the office complex “The Icon” at Vienna Central Station, one of the company's best-known real estate projects in Austria. The building was acquired by the Allianz Group in 2017 for over half a billion euros, although it was still under construction at the time. Until recently, the complex symbolized the Signa Group's high ambitions and expansion course, which focused primarily on large real estate projects.
The office complex “The Icon Vienna” at Vienna Central Station met with criticism during its planning and construction phase, particularly concerning its height. A citizens' initiative, supported by UNESCO, expressed concerns that the originally planned height of 100 meters could hurt the cityscape and affect the UNESCO World Heritage Site “Historic Center of Vienna”. As a result of this criticism, the building height was reduced to 88 meters.
Several renowned companies and diplomatic missions have their headquarters in “The Icon Vienna”. Among the well-known companies are BAWAG, TPA, L'Oréal, Nestlé, Nespresso, Ferring, and Procter & Gamble. The embassies of Australia and New Zealand as well as the delegation of the European Union are also located in this complex.
Financial situation of Signa Development Icon GmbH
According to Creditreform, Signa Development Icon GmbH's free assets amount to only EUR 168,000. This amount represents an asset claim against Signa Icon Holding, which is also insolvent but whose value has already been written down to five percent due to the holding company's bankruptcy. The company's liabilities amount to EUR 2.96 million, a considerable difference from the small amount of free assets.
The original corporate purpose of Signa Development Icon GmbH comprised the management of investments as well as the acquisition, development, and management of real estate - an area that has been severely shaken by recent developments.
Repeated insolvencies within the Signa Group
This bankruptcy is not an isolated case within the Signa Group: several central companies, including Signa Prime Selection AG and Signa Development Selection AG, have already filed for insolvency in recent months. A planned restructuring attempt failed, which led to further problems and concerns regarding transparency. The Austrian Finanzprokuratur filed an appeal against the reorganization proceedings, as it considers a more detailed review of the insolvencies and greater disclosure of the financial circumstances in regular bankruptcy proceedings to be necessary.
Questions about the future of the Signa portfolio
With the bankruptcy proceedings now initiated for Signa Development Icon GmbH, the Signa Group is faced with the challenge of how and whether the remaining assets of the Group can be meaningfully realized. For creditors and investors, it remains unclear how the situation will develop and whether further insolvencies are to be expected within the company network.
These insolvencies also cast a spotlight on the business strategy of the Signa Group, whose large-scale real estate projects were previously regarded as stable and profitable investments. The question of how to proceed with the remaining projects remains unanswered for many observers and those affected.