Signa Nears Deal to Sell Assets to Schoeller Group

(Bloomberg) Signa Prime Selection AG, the property unit of Signa Group, is reportedly close to finalizing a deal to sell a portfolio of luxury assets in Austria to the Schoeller Group, a German family-owned investment firm. The potential transaction could mark a turning point for Signa Prime, which faced insolvency at the end of 2023.

According to sources familiar with the matter, the deal involves the sale of several high-profile properties in Vienna, including the renowned Golden Quarter luxury shopping complex and the prestigious Park Hyatt hotel. Notably, the Schoeller Group was one of 37 initial bidders for the assets.

This potential sale carries additional significance beyond the financial aspect. Signa Prime reportedly owes the Schoeller Group €200 million from a loan agreement signed last year. Selling the assets directly to Schoeller could ease tensions between the two companies and potentially resolve outstanding claims related to the loan.

The deal is expected to be presented to Signa Prime's creditors for approval in the coming days. This coincides with growing momentum towards a viable restructuring plan for the company.  Ahead of a creditor vote scheduled for next week, the plan reportedly proposes placing the management and operations of certain properties under the control of a designated trustee