Massive losses at the subsidiary Consus lead to value adjustments

Berlin, Dusseldorf The project developer Consus Real Estate has recorded massive losses and has to make value adjustments. The board of directors was informed on Monday that “most likely write-downs on investments and loans to affiliated companies will have to be made,” said the subsidiary of the real estate group Adler Group during the night. The price of the Adler Group then fell significantly at the start of trading on Tuesday, down 9.7 percent to EUR 5.26.

The board of directors also informed that the project developer had made a loss, which meant that “the company’s equity on the balance sheet (HGB) amounts to less than half of the share capital”. Based on current calculations, the company’s equity would be negative at the end of 2021. The reason for this is depreciation and the resulting assumption of losses on the basis of existing profit and loss transfer agreements.