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BERLIN: Adler Real Estate has overstated the value of one of its projects by up to 233 million euros ($239 million), the German financial regulator said on Monday, citing an ongoing audit of the company’s financial statements .

The Glasmacherviertel project to develop a former glass factory in Düsseldorf was valued at 375 million euros, and therefore overvalued by 170 to 233 million euros, regulator BaFin said.

As a result, Adler’s balance sheet item listed as “non-current assets held for sale” and the “result from the valuation of investment properties” had been overstated in the company’s consolidated financial statements as of December 31. 2019, he added.

BaFin said the audit of Adler’s combined financial statements and management reports for 2019, as well as audits for the years 2020 and 2021, are ongoing.

Adler, one of Germany’s largest property companies, remains barred from banking and capital markets pending the completion of audits, launched in response to allegations by Fraser Perring’s short seller Viceroy Research in October that the balance sheet of society had been artificially inflated.

Adler said he would appeal the watchdog’s assessment.

“Adler has repeatedly publicly emphasized that he considers the valuation, which has been audited and certified repeatedly in the consolidated financial statements, to be correct and correct,” he said in a statement, referring to the Glasmacherviertel project.

He added that BaFin’s assessment did not affect the validity of the property group’s consolidated financial statements as of December 31, 2019.

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