New building chaos in Vienna: Lamarr department store almost completely demolished after bankruptcy!

New building chaos in Vienna: Lamarr department store almost completely demolished after bankruptcy!

You can literally feel the changes at the Lamarr department store in Vienna's Neubau. After Signa's bankruptcy, the plans for the shopping center are on hold. The once promising building plans to house 200 apartments, a hotel wing and a variety of retail areas. But the reality is different: only four floors were demolished, and the first floor remains for the time being. This reports today.at.

Stumpf Development GmbH acquired the unfinished building at the end of June 2025. It was their subsidiary that bought the Lamarr department store from Signa's bankruptcy. Despite the surplus of interested parties - more than 30 bidders were in the running - the purchase price remained a secret. The Stumpf Group points out the need for approvals for the transaction w24.at.

New plans, new challenges

The future use of the department store should be coordinated with the City of Vienna. It is uncertain whether the numerous projects that were originally initiated by Rene Benko can still be implemented. The original plans included a premium department store as well as a hotel and even a public park on the roof. Now it remains to be seen what adjustments the new owners will make w24.at.

Overall, the building is one third complete. Shell construction and pre-assembly of the building services systems are reported. However, many questions remain unanswered, especially about the height of the building, which according to reports still needs to be approved by the building police. Changes to the construction concept were already requested at the end of September today.at.

The burden of debt

However, the construction site has a serious burden: it is subject to liens amounting to 390 million euros. Bank Austria and Raiffeisenlandesbank Oberösterreich have registered claims of 295 million euros and 95 million euros, respectively. A new buyer not only has to continue the previous work, but also pay off the existing debts - a fact that puts the entire project at risk w24.at.

The difficulties arising from Signa's insolvency are not the only financial aspects that are burdening the city of Vienna. Real Estate Investors AG, another Vienna-based real estate developer, has claims totaling 72 million euros and has a significant number of creditors. These circumstances illustrate the tense financial conditions in the real estate industry 5min.at.

Completion and opening of the Lamarr department store is expected in late 2027 or early 2028. Construction is scheduled to begin in 2026, with expansion work expected to begin in the fall. The exterior design is being designed with a focus on a new meeting area in Karl-Schweighofer-Gasse today.at.