Mubadala Wins $825M Arbitration Award Against Signa, its Founder

Abu Dhabi’s Mubadala Investment Company has been awarded more than €700 million (about $825 million) in arbitration proceedings linked to the collapse of Austria-based Signa Group, according to creditor protection association Creditreform.

Mubadala is among a group of international investors and creditors attempting to recover losses stemming from one of Europe’s largest real estate failures in recent years.

Signa, founded by property investor René Benko, once controlled a portfolio of landmark commercial buildings across Germany, Austria and Switzerland. The group slid into insolvency in late 2023 after higher interest rates and rising borrowing costs triggered severe financial strain.

Creditreform said the arbitration, conducted under the auspices of the International Chamber of Commerce, was brought against Benko personally, key entities within the Signa Group and two family trusts. The total amount in dispute was around €900 million.

It remains unclear how or from where the funds awarded to Mubadala will be paid. Signa’s two principal property arms — Signa Prime Selection and Signa Development Selection — were exempted from payment and cost obligations in the proceedings, their insolvency administrators said.

Benko, once regarded as one of Europe’s most ambitious real estate developers, has been in custody for about a year. He has been convicted twice on fraud charges linked to insolvency cases and has lodged appeals against both convictions.

The collapse of Signa has left investors, including major German and Swiss companies, facing losses running into hundreds of millions of euros.

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