The Central Group, a Thai conglomerate, has purchased the iconic ‘Kaufhaus des Westens’ (KaDeWe) building from the bankrupt Signa Group for one billion euros. This acquisition adds to the majority stake the Central Group already held in the eponymous retailer.
Key points of the deal
The purchase involved the acquisition of the KaDeWe building, previously owned by Signa subsidiary Prime Selection. Talks are also underway to transfer operational management of KaDeWe to the Central Group.
Central Group had an existing option to buy half of the property in spring 2023, although Signa claims that the deal had not been finalized at that time. Now, the Thai holding company has acquired the entire building, covering over 60,000 square meters.
Challenges and insolvency
KaDeWe filed for insolvency at the end of January due to issues within Signa Group. Despite achieving record turnover in the financial year 2022/2023, KaDeWe faced losses attributed to Signa’s allegedly “exorbitant” rents, which hindered sustainable profitability.
Expansion into Europe
The Central Group, known for its presence in Thai shopping centers, is expanding its European portfolio. Alongside KaDeWe, it owns Italy’s La Rinascente and is nearing full ownership of the British department store chain Selfridges, previously co-owned with Signa.
