Infotech

In Frankfurt, a real estate group accused of fraud by a short seller



Posted on Oct 9, 2021 9:46 AMUpdated Oct 9, 2021, 10:09 AM

A DAX 40 real estate group that flies to the rescue of one of its rivals accused of fraud and attacked by short sellers: the story is not trivial. It is currently causing turmoil in the whole of Frankfurt.

Friday morning, Vonovia, the leading residential real estate group (which has just taken control of the number two in the sector, Deutsche Wohnen) came to the rescue of its competitor, the Adler group, and more precisely of its largest shareholder Aggregate Holdings , a private holding company controlled by financier Guenther Walcher. The latter encountered difficulties in repaying a loan linked to its participation in Adler, the value of which had plunged in recent days. Vonovia granted him a loan of 100 million euros and, in exchange, obtained an option to buy approximately 13% of Adler. Its price is 14 euros per share, and it can be exercised for the next 18 months.

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