Adler Group S.A. sells portfolio in Berlin to ADLER Real Estate AG

• Transaction at fair value of EUR 326 million
• Next step towards further optimization of corporate structures

Luxembourg, 24 June 2022 – Adler Group S.A. ("Adler Group") today announced the sale of a portfolio of residential properties in Berlin to ADLER Real Estate AG ("ADLER Real Estate"), following the approval of the Board of Directors of Adler Group as well as the Supervisory Board of ADLER Real Estate. The portfolio comprises around 1,400 residential units in Berlin and has a market value of EUR 326 million according to the latest evaluation by CBRE as of 31 March 2022. The consideration for Adler Group considering minority interests, financial liabilities as well as deferred taxes will be approximately EUR 275 million. The transaction is not subject to any conditions and will be completed without delay.

The transaction relates to the optimization of processes and structures within the Adler Group and its subsidiaries and is therefore in the best interests of the companies. The Adler Group is currently undergoing a program to improve its transparency and corporate governance following allegations made by a short seller.

After the allegations had become known and with the start of the reorganization of the company initiated when Prof. Dr. A. Stefan Kirsten assumed his role as a Chairman of the Board of Directors of Adler Group on 16 February 2022, a comprehensive package of measures was implemented to improve transparency and corporate governance. This included the conclusion of the review by KPMG Forensic with the requirement to submit audited consolidated financial statements of Adler Group and ADLER Real Estate for the 2021 financial year by 30 April 2022, the disclosure of the findings of the review and their reflection in the consolidated financial statements, and the comprehensive communication of the structural and procedural measures to improve transparency and corporate governance. This also includes the appointment of Thomas Echelmeyer as interim CFO on a consultancy basis, the downsizing and effective staffing of the board of directors' committees, the strengthening of the compliance functions with the support of an external consulting firm, and further steps to integrate the Adler Group.

With a share of 96.72 %, the Adler Group is the majority shareholder of ADLER Real Estate AG.

Contact

Investor Relations:

T +352 278 456 710
F +352 203 015 00
E investorrelations@adler-group.com