Adler wants to appeal against the Bafin decision

Luxembourg According to Bafin, the ailing real estate group Adler Group could have overvalued an important real estate project by almost a quarter of a billion euros. This was announced by the financial supervisory authority on Monday.

The Düsseldorf glassmaking district, which belongs to the Adler subsidiary Adler Real Estate AG, was overstated in the 2019 consolidated financial statements at 375 million euros and thus by an amount between 170 and 233 million euros, according to the Bafin in a statement. The authority has been examining the controversial landlord’s books for a year and has not yet completed the investigation.

The Glasmacherviertel transaction has come under the spotlight because by agreeing to sell the project at this valuation, Adler avoided breaching a debt ceiling. This emerges from a special audit that Adler had commissioned to refute allegations by short seller Fraser Perring.