FRANKFURT, Dec 11 (Reuters) - Timo Herzberg, CEO of Signa Prime Selection AG and Signa Development Selection AG is being removed from his duties with immediate effect, Signa said on Monday.

The dismissal marks a further turn for the worse for the embattled Austrian real estate company that has become the biggest casualty so far of Europe's property crash.

Austrian businessman Erhard Grossnigg will take on the role of spokesperson for the boards of the two units, Signa said. Reorganization and restructuring steps for the two real estate divisions are being consistently pursued, it added.

Herzberg did not immediately respond to a request for comment sent outside business hours, or to earlier messages sent via LinkedIn.

At Monday's extraordinary supervisory board meetings of the two divisions, Herzberg was dismissed due to a "strong suspicion of gross violations of duties as a board member," Signa said.

"Especially in challenging times, 100% trust in the people involved and unity in decisions are required," said Alfred Gusenbauer, supervisory board chairman of both subsidiaries. (Reporting by Emma-Victoria Farr and Tom Sims; Editing by Leslie Adler and Sandra Maler)