Benko's US excursion

The dispute over the Chrysler Building escalates

Outstanding payments in the millions: the owner of the property announces that it has taken control of the world-famous building.

In 2019, the acquisition of the Chrysler Building was supposed to symbolize the international rise of the Signa Group. In 2024, there is little left of René Benko's financially ailing conglomerate - and now Christof Stapf, the administrator of Signa Holding, may have to look after the world-famous building in New York City even more intensively than feared.

This is because Benko's Signa acquired the listed Art Deco-style skyscraper a good five years ago together with its US partner RFR. But only the building, not the land on which it sits. This is why the purchase price at the time was in the low three-digit million range.

Now the medium "CoStar News" reports that the private university Cooper Union, which owns the property, has taken control of the Chrysler Building. According to Cooper Union's chief financial officer, RFR has owed 21 million dollars in lease payments for the property since May. This prompted the landowner to send a termination notice to RFR.

RFR is fighting this in a New York court: it has invested more than 150 million dollars to prevent the building, "a landmark of the New York skyline", from "decaying and deteriorating". Cooper Union, on the other hand, had increased the lease for the property from 20.1 million dollars in 2018 to 32.5 million dollars for each of the years 2019 to 2027. In 2028, as much as 41 million dollars would then be due.

It is still unclear what impact the turbulence in New York will have on Signa Holding's bankruptcy proceedings. Trustee in bankruptcy Christof Stapf had always emphasized that he wanted to sell the stake in the Chrysler Building as quickly as possible in the interests of the many creditors. According to reports, the sales process had already been initiated.