Central Group, a major retailer in Thailand, has finalized the acquisition of the remaining shares in KaDeWe Group, which owns several renowned department stores in Germany.
This acquisition includes parts of the portfolio from the now-bankrupt estate of Austrian businessman Rene Benko.
In April, Central acquired the prestigious KaDeWe department store in Berlin and announced plans to purchase the other two stores in the group: Alsterhaus in Hamburg and Oberpollinger in Munich.
The management of these stores will continue under Central Group, which plans to renegotiate the rental agreements for these prime locations, as stated by Christian Graf Brockdorff, the administrator for KaDeWe Group.
However, specific financial terms of this transaction have not been released.
The backdrop to this acquisition is the significant downturn in the European real estate sector, which severely affected Signa, the real estate empire founded by Benko.
Facing a financial crisis, creditors lodged claims amounting to billions of euros against Signa, leading to the bankruptcy of its central holding company and its principal subsidiaries, Signa Prime and Signa Development.
Earlier reports from Handelsblatt, a German business newspaper, suggested that the purchase price for the iconic KaDeWe building was approximately 1 billion euros (38.9 billion baht).
This acquisition is a private venture by Central Group through its subsidiary, Harng Central Department Store Ltd.
It is not associated with Central Retail Plc or Central Pattana Plc, both of which are listed on the SET, as Central Group clarified in a statement.
