Abu Dhabi’s sovereign investor Mubadala has clinched a major arbitration award worth more than €700 million (around $825 million), tied to the dramatic downfall of Austria’s once-sprawling Signa real estate empire.
The ruling adds Mubadala to a growing list of international investors and creditors trying to claw back losses from one of Europe’s most spectacular property implosions in recent years.
Signa, built by high-profile property entrepreneur Rene Benko, once controlled some of the most recognisable commercial buildings across Germany, Austria and Switzerland. That empire unravelled in late 2023, when soaring interest rates and mounting borrowing costs tipped the heavily leveraged group into insolvency.
According to creditor protection group Creditreform, the arbitration—conducted under the International Chamber of Commerce—was directed at Benko personally, key Signa Group entities, and two family-linked trusts. The amount under dispute totalled roughly €900 million.
While the award has now been granted, the practical question of who will ultimately pay remains unresolved. Market observers have pointed to the Laura Private Foundation, owned and managed by the Benko family, as a potential source of funds. Representatives from the KSV 1870 creditors’ association have said it may be the only remaining Benko-linked structure with assets substantial enough to cover the claim.
Notably, Signa’s flagship property arms—Signa Prime Selection and Signa Development Selection—were not held liable for payments or costs in the arbitration, according to their insolvency administrators. These units housed many of the group’s prime city assets and development projects.
Benko’s legal team has said the claim against him personally was dismissed, though no further clarification was provided regarding the role of the family foundation.
Once celebrated as one of Europe’s boldest real estate dealmakers, Benko has spent about a year in custody and has been convicted twice for fraud connected to insolvency cases. He is contesting both convictions.
The collapse of the Signa group sent shockwaves through the European property market, leaving investors—including major companies in Germany and Switzerland—exposed to losses running into the hundreds of millions of euros.
