Signa Prime Selection has announced an agreement to sell three Italian properties to the Schoeller Group, including the prestigious five-star Hotel Bauer in Venice, Italy.
The transaction, which is subject to approval by banks and regulatory bodies, is expected to be finalised in the upcoming months, reported Bloomberg.
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The financial terms of the deal have not been disclosed.
The sale involves the Hotel Bauer, a luxury establishment in Venice, and two commercial property projects in Bolzano.
The Schoeller Group, a company under the control of a well-known German industrialist family, emerged as the highest bidder for these assets, according to a report by Der Standard.
Signa Prime acquired Hotel Bauer in 2020 and secured a €135m loan from Raiffeisenlandesbank Niederoesterreich-Wien for its renovation. However, the refurbishment was suspended last year due to financial arrears. The hotel’s reopening under Rosewood Hotels management is now expected next year, reported Reuters.
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By GlobalDataThis deal is seen as a potential catalyst for the restructuring of Signa Prime, potentially expediting asset sales crucial for settling creditor claims.
The Schoeller Group had previously extended a €200m loan to Signa Prime, which included a comprehensive range of guarantees secured by assets. These guarantees have reportedly hindered the sale of other Signa Prime properties and have been an obstacle in raising new capital, as per the Bloomberg report.
In a related development, the Thai Central Group, a long-term partner of Signa Prime in operating and owning luxury department stores in Europe, disclosed that it had agreed to purchase Berlin’s KaDeWe store from the company earlier in April 2024.
