Billionaire investor Nicolas Berggruen has asked Karstadt's insolvency administrator to extend the deadline for completing negotiations with Karstadt property owner Highstreet until July 30, a person familiar with the matter told Dow Jones Newswires Friday.

A spokesman for Klaus Hubert Goerg, Karstadt's insolvency administrator, confirmed that Berggruen had sent a letter requesting the extension and planned to discuss the matter with Berggruen next week. A spokesman for Berggruen's holding company confirmed the letter to Goerg, dated July 1.

Berggruen has already secured approval from the majority of shareholders and lenders in the Highstreet consortium, but doubts he can meet the deadline with all of its lenders by the current July 15 deadline, according to the person familiar with the matter.

Berggruen's request to extend the negotiation period underlines the ongoing difficulties in closing his deal to acquire insolvent German retailer Karstadt. Berggruen signed a tentative agreement to acquire the iconic department store brand last month, but closing hinges on reaching an agreement with its property owners, including the Highstreet real estate consortium led by Goldman Sachs Group Inc.

Berggruen and Highstreet have for weeks haggled over Berggruen's request to lower rents, share upside in Karstadt's future profits and restructure Karstadt into separate operating groups under one parent company.

Although Berggruen has requested the extension, he will only accept it if Highstreet shows it is willing to reach a deal, according to the person familiar with the matter.

Highstreet must give notice by July 6 that it will host an extraordinary shareholders meeting to discusss the outstanding deal terms, under Berggruen's terms. Berggruen has further demanded that Highstreet obtains internal approval by July 14 to the terms of the Karstadt acquisition proposed by Berggruen, according to the person.

A spokesman for Highstreet wasn't immediately available for comment.

By William Launder, Dow Jones Newswires; +49(0)6929725515; william.launder@dowjones.com
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