Karstadts flagship German stores are now in the hands of real estate business Signa

Karstadt's flagship German stores are now in the hands of real estate business Signa

Real estate business Signa has acquired a 75.1% stake in retailers Karstadt Premium Group and Karstadt Sports, taking control of the companies’ flagship German stores.

The company spent EUR300m on the deal, which includes luxury stores KaDeWe in Berlin, Alsterhaus in Hamburg and Oberpollinger in Munich, as well as Karstadt Sports’ 28 specialist outlets.

Meanwhile, Berggruen Holdings maintains its 24.9% stake in Karstadt Premium Group and Karstadt Sports, including 100% of the retailer’s core business and its 83 further department stores.

The money paid in the transaction will strengthen Karstadt Group’s “Karstadt 2015” turnaround strategy and will fund store modernisations, said Signa.

“The takeover of the Karstadt Premium and the Karstadt Sports businesses boosts Signa to one of the leading companies for inner-city retailing in top locations in Germany,” said Christoph Stadlhuber, Signa managing director.

“Signa being the largest landlord of Karstadt, this step means a strategic investment in the company.”