What: Signa disinvests in a major mixed-use project but keeps on building it upon completion.

Why it is important:  The sale includes some Galeria flagships that will keep on operating under the supervision of the new owner.

Commerz Real, a subsidiary of Commerzbank, has purchased the 134-meter tall, 32-story Mynd tower and the traditional Galeria department store connected to the tower in Berlin from Austrian Karstadt owner, Signa.

The sale, which is the largest real estate transaction in the capital in 2023, occurred two years ahead of schedule. Commerz Real, which previously held a 20% stake in the project, is now the sole owner.

However, Signa will continue to develop the construction project, which has about 100,000 square meters of rental space, until its expected completion in 2025. The purchase price has not been disclosed, but experts estimate it to be close to one billion euros. The deal is still subject to approval by the Federal Cartel Office.

Signa sells the Alexanderplatz real estate to Commerz Real, including a Galeria department store