Adler is to retain a 10 percent stake in the property portfolio even after the transaction.
(Photo: dpa)
Düsseldorf, Luxembourg The Adler Group, which recently got into difficult waters, is going on the offensive with the intended sale of a real estate portfolio to LEG Immobilien. More than 15,000 residential units are to be sold – subject to the customary examination of the inventory – as both companies announced on Monday.
According to Adler, the transaction is based on a property valuation of almost 1.5 billion euros, which is above the book value reported for the first half of the year. Adler is also to retain a good 10 percent stake in the real estate portfolio.
For this reason, too, the inflow of funds will not correspond to the property valuation. The money from the sale could be used to repay bonds and loans, it said.
The Adler Group came under fire last week from the short seller and stock market speculator Fraser Perring with his investment firm Viceroy. It is about allegations with regard to the balance sheet, which Adler “sharply” rejected.
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Adler’s share price then fell to a record low of a good 9 euros. By the end of the week, however, it recovered to 12 euros after the real estate giant Vonovia announced that it would consider entering the industry rival.
More: LEG could expand abroad