New departure for Lamarr department store: partial demolition and housing offensive!

New departure for Lamarr department store: partial demolition and housing offensive!

The “Lamarr” project on Mariahilfer Straße is facing fundamental change. After a long period of stagnation and the sudden stop due to the insolvency of the Signa Group in autumn 2023, the largely unfinished department store has now passed into new hands. Stumpf Development GmbH, an offshoot of the Stumpf Group, has acquired the property for around 100 million euros and is planning a comprehensive realignment of the construction project. Loud MyDistrict A partial demolition of the existing shell up to the first floor will be necessary.

What exactly will change? Instead of a continuous luxury department store with 20,000 square meters of sales space, which was originally scheduled to open in spring 2025, the investor is now focusing on mixed use. Around 200 apartments, reduced retail space and a hotel are planned at the rear of the property. This could represent an attractive solution at a time of increasing demand for housing in the city.

The challenges of the time

The transformation of the “Lamarr” project comes at a critical time for the Vienna housing market. Experts warn of an impending housing shortage as property completions will fall sharply in the coming years. EHL real estate agent Karina Schunker reports that many projects have been stopped and uncertainty about affordable housing is growing. By 2025, completions could fall by up to 53% The press reported.

The original concept of Signa, which also included a hotel and a public park on the roof terrace, is likely to give way to the new plans. Stumpf Development GmbH would like to work with the City of Vienna to develop a usage concept that meets the requirements of the current market situation. The site remains burdened with €390 million in debt, meaning any buyer will have to pay off this debt before the project can be made sustainable.

Outlook on the construction progress

The dismantling of the existing structures is scheduled to begin in July 2024, while the structural work in the basement floors is scheduled to begin from the end of 2024. Construction is planned for early 2026, with the new Lamarr targeted for completion in 2028. Publicly accessible areas, such as the almost 1,000 square meter roof terrace, will remain part of the new concept. High-quality commercial space will be retained in a reduced form in order to meet the needs of future residents.

With the sale and realignment of the Lamarr department store, a new chapter of construction projects in Vienna is taking shape. It remains to be seen how Georg Stumpf's company will overcome the enormous challenge posed by the historic property and the current market situation.