German landlord Adler Group renegotiates debt as real estate deals slow

Adler SA

25/04/2024 12:53

BERLIN, April 25 (Reuters) - Adler Group  ADJ.DE  on
Thursday entered a non-binding agreement with bondholders to
restructure its debt as the embattled German landlord struggles
to sell property to cover its liquidity needs amid a real estate
market slowdown.  
    Adler, one of Germany's biggest landlords, is fighting a
liquidity crisis triggered by a downturn in the domestic
property market, rising energy and building prices caused by
Russia's invasion of Ukraine and the fallout from the COVID-19
pandemic.
    Although it managed to divest real estate assets worth 530
million euros ($568.32 million) last year, the amount of deals
lags the original plans, Adler's statement said.
    Therefore, the firm agreed with bondholders to postpone
repayment of part of its debt beyond 2026-2027.  
    "The perfect storm in the financing and transaction parts of
our industry is not yet over, but market turbulence has calmed
down," Chief Executive Thierry Beaudemoulin said.  
    The restructuring programme and portfolio devaluations
weighed on its finances, with the bottom-line loss deepening to
1.8 billion euros in 2023, down almost 200 million euros from a
year ago. 
($1 = 0.9326 euros)

 (Reporting by Matthias Inverardi and Andrey Sychev; Editing by
Madeline Chambers)
 ((andrey.sychev@thomsonreuters.com;))