Steinhoff International Holdings said a European real-estate portfolio may be worth about half previous estimates, as the embattled global retailer reviews the value of its assets following an accounting scandal.
Hemisphere International Properties BV has been valued at about 1.1 billion euros ($1.3 billion) in a review by CBRE Group Inc., Steinhoff said in a statement. That compared with a previous book value of 2.2 billion euros. The findings will go toward calculations for the eventual publication of accounts for 2017, which were delayed after Steinhoff reported accounting irregularities in December.
The 2.2 billion-euro valuation took account of the sale of a flagship store in Vienna that the company sold to shore up its balance sheet late last year, when the stock plunged more than 90 percent in the wake of the scandal. Auditors at PwC are reviewing Steinhoff’s accounts, including off-balance sheet structures and related parties, and said they would conclude the investigation by the end of the year.