By Anna Ellis •
Published: 05 Nov 2023 • 16:55
Germany's Tallest Elbtower Skyscraper Halted in Hamburg. Elbphilharmonie Concert Hall, Hamburg.
Image: mapman / Shutterstock.com
Construction of one of Germany’s tallest buildings, the 64-story Elbtower skyscraper in Hamburg, has come to an abrupt halt.
The news comes as the developer, Signa, allegedly failed to make payments to its builder, Lupp, according to Market Screener.
Signa, owned by billionaire Austrian businessman Rene Benko and a co-owner of New York’s Chrysler Building, had been progressing steadily with the project.
According to Matthias Kaufmann, overseeing Lupp’s finances, the construction activities at Elbtower were suspended due to outstanding payments from Signa.
The interruption raises uncertainty regarding the future of the Elbtower, which was estimated to have a value of €1.3B upon completion.
This development is indicative of the challenges facing the property sector in Europe’s largest economy.
For years, the real estate sector was a significant contributor to Germany’s economy, accounting for approximately one-fifth of output and one in ten jobs.
However, a sharp increase in interest rates and construction costs has disrupted the sector, pushing developers into insolvency as bank financing becomes scarcer, property deals freeze, and prices decline.
Elbtower is situated in Hamburg’s Hafen City district, which also houses the Elbphilharmonie Concert Hall.
The building is set to host various tenants, including a Nobu hotel and restaurant, risk advisor Aon, and a local bank.
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Originally from Derbyshire, Anna has lived in the middle of nowhere on the Costa Blanca for 19 years. She is passionate about her animal family including four dogs and four horses, musicals and cooking.
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