Börse Express – ROUNDUP 2 / Another setback for Adler Group: BCP’s contract with LEG has ended

(new: Adler Group reaction, share price)

DÜSSELDORF (dpa-AFX) – Sick real estate group of the Adler Group it has to accept another failure in the planned debt reduction. Targeted sale of 63 percent stake in subsidiary Brack Capital Properties (BCP) to similar LEG companies does not take place. LEG will not use the option to buy back the remaining shares in BCP, announced on Wednesday evening to the Düsseldorf real estate group. Investors reacted coolly on Thursday.

The Adler group took note of a statement from LEG Immobilien, the company said on Thursday on request. The Board of Directors will assess further opportunities to participate in BCP, taking into account the interests of all shareholders. Due to the high quality of the portfolio, Adler was confident that a solution would be found in a reasonable time. At the end of August, the semi-annual data will be updated.

The already badly battered share fell by more than eight percent on Thursday, and recently cost less than three euros. Shares have fallen more than 85 percent in the last 12 months, largely because the short seller Fraser Perring has been putting pressure on him since October. Due to Perring’s allegations, Adler was the target of the Federal Financial Supervisory Authority (BaFin).

At the end of 2021, LEG first acquired a 31 percent stake in a Dutch housing cooperative for € 328 million. A package of almost 7 percent. for EUR 75 million came directly from the Adler Group, the remaining 24 percent. came from other investors. During this time, LEG also secured an option for a further 63 percent of BCP shares from the Adler Group. If the option had been exercised, the LEG would have paid at least EUR 765 million for it. BCP has over 12,000 apartments, most of which are located in Leipzig and North Rhine-Westphalia.

Also for the largest German real estate group Vonovia
the acquisition of an ailing competitor of the Adler Group is no longer an option. “The markets have changed and therefore the original idea of ​​acquiring the Adler Group is definitely rejected for us,” said Rolf Buch, head of the company of the news agency dpa-AFX the day before. The decision of those times can therefore also be critically questioned.

A few months ago, Vonovia became the largest shareholder of a competing company in the industry, the Adler Group, which ran into trouble. Vonovia secured a 20.5% stake in a competitor through the realization of a pledge.

Adler came under the control of the Federal Financial Supervisory Authority (BaFin) after the real estate firm first came under pressure from seller Fraser Perring in October. His research service Viceroy has made serious allegations against Adler, including an evaluation of real estate projects. Adler has always denied the allegations.

On Monday, the financial regulator announced that Adler Real Estate’s 2019 annual balance sheet was incorrect. The value of the project to extend the former glassworks in Düsseldorf was estimated at 375 million euros, which is approximately twice the market value. On the other hand, Adler maintains that the audited consolidated financial statements for 2019 are fully correct and intends to appeal against the BaFin decision.

This is another blow to Adler. At the end of April, the company presented data for 2021, despite the refusal of audit by KPMG auditors – it suffered a loss of a billion due to a high depreciation. KPMG is no longer available as an auditor for the 2022 annual and consolidated financial statements. Due to the lack of a test certificate, almost all members of the Management Board resigned. However, the head of the board, Stefan Kirsten, only accepted four of them./mne/lew/nas/jha/

 ISIN  DE000LEG1110  DE000A1ML7J1  LU1250154413

AXC0252 2022-08-04 / 14: 39

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