Deal far too cheap?

Mariahilfer Straße: Benko in the sights of the WKStA

Signa founder Benko, construction site in Vienna's Mariahilfer Strasse: work has been suspended for 160 days.

(Bild: Klemens Groh Krone KREATIV)

Criminal complaint: The purchase of the former Leiner building in Vienna's Mariahilfer Straße has repercussions for René Benko and a former top manager of the furniture retailer Kika/Leiner.

Vienna. Mariahilfer Straße 10-18, where the main building of the traditional furniture chain Leiner stood for decades. Today, the shell of the Lamarr department store rests there, symbolizing the decline of Signa like no other building in the capital. Work has been at a standstill for 160 days.

The spectacular real estate deal around Christmas 2017 has recently come under close scrutiny by the Public Prosecutor's Office for Economic Affairs and Corruption (WKStA). At the center: the bankrupt Tyrolean real estate speculator René Benko and a former top manager of Kika/Leiner. The suspicion: according to a criminal complaint submitted to "Krone" and "News", they allegedly acted together to the detriment of the previous owner of the property, Kika/Leiner.

Possible damage in the millions
The allegation is that Benko persuaded the then top manager of Kika/Leiner to sell the property to Benko's real estate group far too cheaply. The scoreboard: the new owner of the Kika/Leiner real estate. The allegedly far too cheap sale in 2017 is said to have caused millions in losses.

As is known, the Kika/Leiner properties were taken over by the Supernova Group of German entrepreneur Frank Albert at the end of May 2023. A year later, the new owners have apparently reviewed the sale of the Leiner building to Benko in 2017 in detail based on the available documents. There are allegations of embezzlement and serious fraud. The presumption of innocence applies.

Political backing from Kurz
Years ago, the research platform "Addendum" revealed striking details about the spectacular deal from 2017. The purchase by Benko shortly after Christmas 2017 even received political backing from the then newly appointed Federal Chancellor Sebastian Kurz (ÖVP). He exerted influence on the land registry court in order to speed up the process for Benko, later arguing that it was "service-oriented administration".

René Benko with door opener Sebastian Kurz

(Bild: Alexander TUMA)

Two further offers
At the time, "Addendum" had already reported that a further offer had been submitted for the sale of the nationally renowned Leiner building at Mariahilfer Strasse 10-18, which was significantly higher than the 60 million euros offered by Benko: namely 90 million euros.

Today, the criminal complaint provides new details: there are even said to have been two higher offers. One for 70 million euros. One for 90 million euros. From the Wertinvest Group of entrepreneur Michael Tojner and from a subsidiary of the XXXLutz Group. Nevertheless, Benko was awarded the contract for 60 million. The 47-year-old Tyrolean took the lead in negotiating the deal himself over the 2017 Christmas holidays. 

The prominent corner on Mariahilfer Straße has been a sad sight for months.

(Bild: klemens groh)

At the time, close observers were struck by the fact that Benko concluded the super-cheap 60 million transaction via his Laura Private Foundation and not with his then entrepreneurial flagship Signa. In any case, Benko's Laura Private Foundation made an almost unbelievable cut with the department store bargain in a very short space of time: Benko's Signa Group bought the property from its lord and master's Laura Foundation around a year later for 190 million euros, according to the facts now available.

A note in the land register
Now the senior public prosecutors from the economic and corruption prosecutor's office and the investigators from Soko Signa are apparently also interested in the real estate transaction from back then. The current development does not bode well for the ongoing sales process of the Lamarr shopping mall, which was originally planned as a department store:

As a result of the complaint, a reservation was made in the land register regarding the ongoing criminal investigations. A circumstance that is likely to have a deterrent effect on potential buyers of the Benko megalomania memorial.