Germany’s financial watchdog, BaFin, said it has “concrete evidence” of violations of accounting regulations by Gateway Real Estate, which is listed on the Frankfurt Stock Exchange.
According to the regulator, Gateway Real Estate overvalued a property listed in the short version of its financial statement for the fiscal year ending in June 2023.
BaFin found that the value of the property, reported to be located in Augsburg, at a fair value of €141.5m was inflated by adding public grants of around €46.7m.
The property was similarly overvalued in December, 2022, because the grants were taken into account, BaFin added.
BaFin ordered an audit of the short version of the financial statement for 2023 half-year, and the associated interim report of Gateway Real Estate last April.
Gateway Real Estate has a market capitalisation of around €152m as of September 30, 2024, accordion its latest published figures.
The company develops residential real estate, focusing on Germany’s top seven cities, and selected high-growth regions such as Berlin, Dresden, Cologne, Mannheim and Augsburg, among others, with a gross development volume of over €5bn, according to its latest financial statement.
No one at Gateway was available for comment.
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