Signa’s mark-up exposed as Thai investor slashes rental payments

Thailand's Central Group is now paying market-rate rent for the Oberpollinger in Munich and Alsterhaus in Hamburg. — Bloomberg

THAILAND’S Central Group has significantly reduced the rent it pays to Signa Prime Selection AG for two German department stores, according to people familiar with the matter.

The move illustrates the extent to which Signa, once Austria’s largest privately owned real estate company, relied on rental terms to inflate property valuations – and how much those valuations have changed since the Austrian conglomerate’s meltdown at the end of last year.