Bafin criticizes big mistakes in Adler’s balance sheet


fThere is new bad news for the troubled real estate company Adler Group. Because the financial services regulator Bafin identified further serious errors as part of its balance sheet control. According to Bafin, the consolidated balance sheet total of the Adler subsidiary Adler Real Estate is 3.9 billion euros too high in the balance sheet for 2019, which means that the annual result is also 543 million euros too high. In addition, the subsidiary ADO Properties should not have been fully integrated into the consolidated financial statements.

The Bafin has now found three more errors in the Adler balance sheets, after having criticized the overvaluation of a real estate project in Düsseldorf-Gerresheim in August. According to Bafin, the value of the project was 170 million to 233 million euros too high. At the time, Adler had raised an objection to the Bafin’s partial findings and announced on Thursday that it would also object to the Bafin’s current error notice.

Adler contradicts Bafin findings

With a judicial review of the Bafin notices, the Adler Group wants to make a further contribution to clarifying allegations that related parties have influenced transactions and business transactions. This last year from the professional short seller Fraser Perring The allegations made raised deep doubts about the Adler balance sheets from shareholders and creditors. The share price of around 20 euros at the time then collapsed and is currently bobbing in the single-digit euro range.


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For detailed view

More transparency and clarification are apparently actually necessary with a view to the possible influence of those pulling the strings on the company. The Bafin also complains that Adler Real Estate did not keep records of whether and why counterparties to corporate and real estate transactions were classified as related parties. “The accounting records were incomplete in this regard,” the agency notes.



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