LEG says it will not buy remaining BCP stake from troubled Adler (updated)

Adler SA

03/08/2022 20:47

(Adds background on transaction, Adler)
    FRANKFURT, Aug 3 (Reuters) - German real estate group LEG
Immobilien  LEGn.DE  said on Wednesday it would not exercise an
option to buy further shares in property investor BCP from rival
Adler  ADJ.DE , which was pursuing the transaction to reduce its
debt load.
    Adler said in May it expected LEG to go ahead with buying
its remaining 63% stake in BCP, which owns about 12,000
apartments in Germany, before the deadline in
September. urn:newsml:reuters.com:*:nL5N2WV2OQ
    Germany's financial regulator this week said that Adler
overstated the value of one of its projects by up to 233 million
euros ($239 million). urn:newsml:reuters.com:*:nL8N2ZD4IS
    In a bid to reduce debt, Adler had already sold roughly
30,000 apartments - nearly half of its portfolio - and other
assets between late 2021 and early 2022. This included the sale
of a 6.8% stake in BCP to LEG with an option to buy the rest.
 urn:newsml:reuters.com:*:nL8N2R7144  urn:newsml:reuters.com:*:nL8N2RM2OL  urn:newsml:reuters.com:*:nL8N2TT0VF

 (Reporting by Ludwig Burger; Editing by Leslie Adler and Deepa
Babington)
 ((ludwig.burger@thomsonreuters.com; +49 30 220133634;))