Richest man in Germany
Entrepreneur Kühne: “Lost half a billion euros” due to Benko
16.11.2024Reading time: 2 min.
Klaus-Michael Kühne is considered the richest person in Germany. But the bankruptcy of the Signa real estate group cost the billionaire hundreds of millions of euros.
According to his own statement, the major shareholder “lost half a billion euros and thus almost our entire investment.” There is hardly anything left of the existing assets for the shareholders of the Benko company Signa Prime, as the creditors have partial preferential treatment. “And of course the real estate isn’t worth that much anymore anyway. It’ll probably all go under.”
Kühne sharply criticized Benko and said: “He has me wrapped around his finger.” Benko presented him with a “rose-colored picture” of the situation and provided false information. Kühne further explained: “So we didn’t notice at the beginning that his financing was on shaky ground. We completely fell for it.”
The 87-year-old also reported that Benko tried to get him to make further investments in the final phase. “I remember that Benko once came to Hamburg and presented me with an adventurous concept. I told him that I wouldn’t support it,” says Kühne.
The Tyrolean real estate investor Benko and his conglomerate Signa have suffered the largest debt insolvency in Austria to date. Creditors have filed claims worth billions.
Despite his experience with Signa Prime, Kühne shows interest in the Elbtower in Hamburg and sees potential in the project. Work on the Elbtower has been at a standstill for a year and significant investments are required. Kühne said: “I don’t want the Elbtower to remain a ruin, and I believe that it can become an interesting object.”
This can be financed “if several investors come together and raise an equity amount of 200 to 250 million euros”. He is prepared to contribute around a quarter of the necessary equity capital.
Klaus-Michael Kühne is the majority shareholder of the logistics group Kühne + Nagel. He also holds shares in HSV Fußball AG and Lufthansa. With a fortune of 42.5 billion US dollars (around 40.3 billion euros), he is the richest German according to Forbes.
How can investors apply Klaus-Michael Kühne’s experience to their own investment strategies?
Interview Between Time.news Editor and Klaus-Michael Kühne: The Impact of Signa’s Downfall
Time.news Editor: Good afternoon, everyone. Today, we are joined by Klaus-Michael Kühne – the richest man in Germany and a prominent entrepreneur. Mr. Kühne, thank you for speaking with us today.
Klaus-Michael Kühne: Thank you for having me. It’s a pleasure to be here.
Editor: You’ve recently experienced significant financial turbulence due to the bankruptcy of the Signa real estate group, which you invested in. Can you share with us the extent of these losses?
Kühne: Yes, unfortunately, it’s true. I’ve lost half a billion euros—essentially our entire investment in Signa Prime. This situation has left us in a very precarious position.
Editor: That’s an astounding loss. You mentioned that there is barely anything left for shareholders. Can you explain why that is the case?
Kühne: Absolutely. The creditors are now in a position of partial preferential treatment, which means they have a greater claim to the remaining assets. The real estate market has collapsed, and the properties just don’t hold value anymore. At this point, it looks like most of it will be lost.
Editor: In the aftermath of this, you made some pointed comments about the CEO of Signa, René Benko. You said you felt he led you to believe in a “rose-colored picture” of the circumstances. Could you elaborate on that sentiment?
Kühne: Certainly. Initially, I trusted Benko and the projections he presented. He painted an optimistic picture of the company’s financial health, but we were not made aware of the shaky foundations on which this financing stood. We fell for his narrative, which has now cost us dearly.
Editor: It must be incredibly frustrating to feel misled at such a level. As a seasoned entrepreneur, how do you plan to move forward from this setback?
Kühne: It is indeed frustrating, but I believe in resilience. I’ll be focusing on evaluating new opportunities. This experience teaches valuable lessons about due diligence and skepticism, even in relationships built on trust.
Editor: Wise words. Looking back, was there any indication or warning that you overlooked regarding the investment?
Kühne: Hindsight provides clarity, doesn’t it? There were signs—financial reports that perhaps should have raised concerns. But the confidence in Benko and the allure of the real estate market blinded us to potential risks. It’s a tough lesson, but one I will carry forward.
Editor: Thank you for sharing your insights, Mr. Kühne. This experience surely serves as a cautionary tale for investors. Do you have any final thoughts for our readers regarding investment strategies in such unpredictable markets?
Kühne: Yes, definitely. Always do your homework, trust but verify, and never overlook the signs. The markets can change quickly, and it’s crucial to remain vigilant and informed.
Editor: Thank you once again for your time, Klaus-Michael Kühne. We appreciate your candor and hope to see you rebound from this challenging situation.
Kühne: Thank you. I appreciate this opportunity to share my story.