Bafin tears apart Adler Real Estate’s financial statements

Dusseldorf, Berlin Doubts about the balance sheets of the troubled real estate group Adler have reached a new dimension. The financial regulator Bafin sees three other accounting errors, some of them serious, in the 2019 annual financial statements of the subsidiary Adler Real Estate. Among other things, it accuses the group of illegal consolidation of the company Ado Properties, which has been merged with Adler.

“The consolidated balance sheet total was 3.9 billion euros and the overall result was 543 million euros too high,” Bafin said in a press release. The highly indebted Adler Group announced that it would appeal against the Bafin decision.

It is not the first error notice from Bafin. As early as August, the financial supervisors had identified a first error in the 2019 annual financial statements, which they considered to be significant. They came to the conclusion that Adler had overvalued an important real estate project in Dusseldorf – up to a maximum of almost a quarter of a billion euros.