The major Thai developer, Central Group, has taken over the property that is home to Berlin's iconic KaDeWe department store following an agreement with the previous, insolvent owner Signa Prime Selection, Central said on Friday.
The Thai group is also considered to be among the leading candidates bidding to fully take over the whole KaDeWe Group, including the retail business itself, according to trade experts.
In addition to the famed high-end KaDeWe store in Berlin, which was founded in 1907 and is perhaps the country's best-known retail location, the KaDeWe Group also includes the Oberpollinger department store in Munich and the Alsterhaus department store in Hamburg.
Central currently holds a 50.1% stake in the luxury department store chain, while 49.9% belong to the financially troubled Signa Group owned by Austrian real estate tycoon René Benko.
The KaDeWe Group filed for bankruptcy in January, like many other businesses linked to Benko's sprawling business empire. The company's stores have continued operating under self-administration.
"We are pleased to add KaDeWe Berlin to Central Group's historic flagship luxury store real estate portfolio," Central Group chief executive Tos Chirathivat said.
"The additional capital investment demonstrates our family's commitment to the KaDeWe Group, our loyal customers, employees, and business partners in Europe," he said according to a press release.
"We will continue our efforts to find the best possible solution with all parties involved to allow our department stores to return to normal operation – better and stronger than before, and as soon as possible."
According to the statement, Central "remains in talks and ... is optimistic of reaching an agreement" to acquire further assets and begin "an orderly exit from the insolvency."
Until a few months ago, Signa owner Benko was considered a multibillionaire with the US magazine Forbes estimating the 46-year-old's fortune at $6 billion at the beginning of 2023.
Since the end of December, however, a whole series of companies from Benko's Signa Group have filed for insolvency.
Benko's convoluted business empire has a portfolio of prestigious assets in Germany alongside KadaWe, including the Elbtower in Hamburg and the department store chain Galeria Karstadt Kaufhof, which is also insolvent.
The KaDeWe store in Berlin has a long and storied history. The building was largely destroyed in 1943 after a US warplane crashed into the building during World War II, but was rebuilt in 1950 in what was then West Berlin and became a renowned symbol of West Germany's postwar economic revival.
The store boasts more than 60,000 square metres of shopping space, the equivalent of about eight football pitches stocked with high-end clothing, luxury goods and food items.
Tourists in Berlin frequently visit the store, which underwent a multi-million-dollar renovation in 2016.
