Time changes very fast. If René Benko had needed 600 million euros at short notice two years ago, investors would probably have been racing to get permission to hand over their assets to the Tyrolean “wundervuzzi”. Today, the name “Cigna” rings alarm bells among the moneyed elite, and potential donors have long since stopped contacting Benko.
This is currently a big problem for Europe’s former real estate moguls, now derided as “Osigarchs”. According to “Handelsblatt”, Benko will need capital investments of 600 million euros by the end of the current week – otherwise things look bleak. However, the search for an investor must be extremely tough.
The capital investment should consist of a 200 million euro bond due at the end of November and running costs. A total of 1.5 billion euros will be paid by the end of the first half of 2024. According to Handelsblatt, real restructuring should begin only when liquidity is secured.
To survive, Cigna Holdings will have to shrink healthily. According to the report, Cigna may separate from its trading subsidiary Cigna Retail. Related discussions are already underway.
On the other hand, Cigna Prime, which owns iconic properties like Berlin’s Kadeway, Selfridges in London and Hamburg’s Elbtower, looks in bad shape. Powerful investors were reportedly begging for money in the past few days as the company needed 500 million euros this year.
Some of the investors contacted are said to have already ignored Cigna.