BERLIN (dpa-AFX) - Real estate group Adler is raising rents in Berlin and pulling out of an alliance that was supposed to limit such increases. The adjustment of rents was necessary after an overall consideration of the interests of stakeholders, shareholders, creditors and tenants, a spokeswoman for the company announced Tuesday. As a consequence, the Adler Group is withdrawing from the Berlin Alliance for New Housing Construction and Affordable Housing.

The alliance has existed since the beginning of 2022, and an agreement was signed in June 2022. In addition to new construction targets, it also includes agreements on rent development and tenant protection. Among other things, it was stipulated that private housing companies would raise rents by a maximum of 11 percent in three years. In Berlin, up to 15 percent in three years would be legally possible. In principle, the local comparative rent of the rent index may not be exceeded.

The Adler Group held at the end of 2022, a good 26 000 rental apartments, of which about 17 000 in Berlin. In its statement on Tuesday, it did not disclose by what percentage it is currently raising rents. Several media outlets have reported in recent days that the group is taking full advantage of the 15 percent cap in numerous cases.

The Adler Group is deep in crisis. Adler had come under the scrutiny of financial regulator Bafin after the real estate company first came under pressure from short-seller Fraser Perring in October 2021. He had made serious accusations against Adler, among other things concerning the valuation of real estate projects. Short sellers sell borrowed shares in the hope of falling prices in order to buy them back later at a lower price.

Auditing firm KPMG later refused to give Adler an audit certificate for its 2021 financial statements, and last year the Adler Group posted a loss of around 1.7 billion euros. In April, a court gave the group the green light to restructure./nif/DP/stw