Mubadala Wins $825M in Signa Collapse Arbitration

Abu Dhabi's Mubadala fund has been awarded more than 700 million euros ($825 million) following an arbitration linked to the collapse of Austria’s Signa property empire, according to creditor protection group Creditreform. Mubadala is joined by other global investors seeking to recoup losses from one of Europe's largest real estate failures.

Signa, established by real estate investor Rene Benko, once owned iconic properties across Germany, Austria, and Switzerland. It succumbed to insolvency in late 2023 due to escalating interest rates and borrowing costs. Creditreform, representing Signa's creditors, stated the arbitration, conducted under the International Chamber of Commerce, targeted Benko himself, Signa's core entities, and two family trusts.

Despite the 900-million-euro case, there's uncertainty over the reimbursement source for Mubadala. Observers suggest funds could originate from the Laura Private Foundation, managed by the Benko family. While Signa's prime property operations were exempted from costs, Benko's arbitration claim was dismissed, his lawyer confirmed. Meanwhile, Benko remains in custody, appealing convictions for fraud linked to insolvency cases.