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Signa agrees sale of iconic Venice Hotel to Schoeller Group
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The deal between Signa Prime and the Schoeller Group — controlled by a prominent family of German industrialists — includes the coveted Hotel Bauer in Venice, and two commercial property projects in Bolzano.
Signa Prime Selection AG has agreed to sell three Italian properties, including the five-star Hotel Bauer in Venice, to the Schoeller Group. The sale must be approved by banks and regulators and is set to close in the coming months, the company said in a statement. Signa didn’t disclose financial details in the statement.
The deal between Signa Prime and the Schoeller Group — controlled by a prominent family of German industrialists — includes the coveted Hotel Bauer in Venice, and two commercial property projects in Bolzano. News of the sale was earlier reported by Der Standard, which said Schoeller had submitted the highest offer.
Signa acquired the hotel located in the heart of Venice’s web of canals in 2020, and took a €135 million ($145 million) loan from Raiffeisenlandesbank Niederoesterreich-Wien to help finance its renovation. But construction work was halted last year due to financial arrears, delaying an eventual opening under the management of Rosewood Hotels.
The transaction could speed up the restructuring of Signa and accelerate the pace of asset sales, which are key to pay creditor claims.
The Schoeller Group provided a €200 million loan to Signa just months before its financial meltdown. The loan had a broad range of guarantees underpinned by assets, which have effectively blocked the disposal of other Signa property assets and stalled efforts to raise fresh funds, Bloomberg had previously reported.
Earlier this month, the Thai Central Group, which had for years partnered with Signa to operate and own luxury department stores across Europe, said it had reached a deal to buy Berlin’s KaDeWe store from Signa Prime.
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