Adler overvalued real estate property by up to 233 mln euros - regulator (updated)

Adler Real Estate AG

01/08/2022 16:24

(Adds details)
    BERLIN, Aug 1 (Reuters) - Adler Real Estate overstated the
value of one of its projects by up to 233 million euros ($239
million), Germany's financial regulator said on Monday, citing
an ongoing audit of the company's financial statements. 
    The Glasmacherviertel project to develop a former glassworks
in Duesseldorf was valued at 375 million euros, and therefore
overvalued by between 170 million and 233 million euros, the
BaFin regulator said.
    As a result, Adler's balance sheet item listed as
"non-current assets held for sale" and the "result from the
valuation of investment properties" had been overstated in the
company's consolidated financial statement as of Dec. 31, 2019,
it added.
    BaFin said the audit into Adler's financial statements and
combined management reports for 2019, as well as audits for the
years 2020 and 2021, were ongoing.
    Adler, one of Germany's biggest real estate companies,
remains shut out of banking and capital markets pending
completion of the audits, launched in response to allegations by
short seller Fraser Perring's Viceroy Research in October that
the company's balance sheet had been artificially inflated.
 urn:newsml:reuters.com:*:nL5N2WU1JM
    Adler said it would appeal the watchdog's assessment.
    "Adler has repeatedly pointed out publicly that it
considered the valuation, which had been audited and certified
several times in the consolidated financial statements, to be
proper and correct," it said in a statement, referring to the
Glasmacherviertel project.
    It added BaFin's assessment did not affect the validity of
the real estate group's consolidated financial statement as of
Dec. 31, 2019.
    ($1 = 0.9739 euros)

 (Writing by Rachel More
Editing by Susan Fenton and Mark Potter)
 ((rachel.more@thomsonreuters.com;))