Germany’s financial watchdog, BaFin, is examining Accentro Real Estate’s financial statements due to potential accounting irregularities.
The financial supervisory authority said in a statement that it has “concrete evidence” of violations of accounting regulations by the Frankfurt Stock Exchange-listed residential real estate firm.
BaFin said it has ordered a review of Accentro’s financial statements for 2021 and 2022.
According to BaFin, Accentro may have needed to adjust the value of receivables reported in its consolidated balance sheets by €18.9m for 2021 and €19.8m for 2022.
BaFin said the receivables in question are related to the termination of an agreement to acquire German real estate manager DIM Holding and loans to the seller.
In response, Accentro said it is in talks with BaFin to further clarify past facts, and to resolve the concerns.
Accentro said its new management board has already made a value adjustment of €13.3m, as of 30 September 2023, due to ongoing developments in connection with the enforcement of the claim.
Accentro – a major player in Berlin and other German metropolitan areas – focuses on selling property portfolios to institutional investors, according to the company’s third quarter of 2023 results presentation.
The company boasts a portfolio of 5,732 units with a book value of €590m.
According to the presentation, Brookline Real Estate holds the majority stake of 83.1% in Accentro, followed by Adler Real Estate with 4.8%, and other shareholders comprising the remaining 12.1%.
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