The Austrian real estate and department store billionaire René Benko is said to have big plans, according to a report by the Bloomberg news agency. According to insiders, he wants to polish up his real estate business with a bond with a volume of around 300 million euros. Most of his tenants are department stores and hotels, and the pandemic is hard on both of them – not least Galeria Karstadt Kaufhof, its second largest tenant.
Signa Prime Selection AG, which is majority owned by Benko, is talking to several banks about the placement of the bond, according to informed sources. The discussions are at an early stage and it is not certain that a transaction will result, said those familiar with the matter.
Signa recently discussed plans with the banks to back this bond with real estate assets and to separate this collateral from other creditors, it said.
The company declined to comment on the capital-raising plans.