Adler Cancels Development-Project Sale After Buyer Didn’t Pay

(Bloomberg) — Adler Group SA called off the sale of a package of property developments over missing payments in the latest disruption for the troubled real-estate firm.

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The company rescinded its contract with Partners Immobilien Capital Management over money still owed in the 313 million-euro ($338 million) deal from May 2020, Adler said on Monday in its quarterly report.

Partners bought seven development projects from Adler’s Consus unit, but still had to pay 189 million euros as of the end of June 2021, according to KPMG. As of the end of the year, the company had received no assurance it would receive the remaining funds and so pulled out “to avoid lengthy legal proceedings,” Adler said.

The brother-in-law of Cevdet Caner, the Austrian tycoon whose family invests in Adler, had an interest in Partners Immobilien.

Adler shares have plunged more than 80% in the past year as it’s struggled to refute short-seller allegations and has seen several resignations among its board and top ranks. The landlord posted a loss of more than 1 billion euros last year as it wrote down the value of a property development subsidiary and has sold off major chunks of its portfolio to pay down debt.

Prosecutors in Frankfurt have opened an investigation into Adler after German financial regulator BaFin filed a complaint, a person familiar with the matter said earlier this month. KPMG quit as the company’s auditor this month after refusing to give an opinion on Adler’s full-year accounts.

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