Steinhoff told its Hemisphere portfolio worth €1.1bn less than estimated
Steinhoff shareholders were dealt another blow on Tuesday, when the company announced that its European property portfolio might be worth only half of the €2.2bn at which it was previously valued by Steinhoff. Indications are that the valuations may have been inflated as a result of related-party rental agreements. Before the announcement, after the close of trade, Steinhoff’s share price had edged up to R3.32, a fraction of the R56.50 at which it traded in December before the disclosure of "accounting irregularities". An independent valuation of Steinhoff’s Hemisphere International Properties shows the properties are worth only €1.1bn. Steinhoff said it was considering the revised valuation and working with its auditors to determine the book value of the properties. It said this would be materially lower than the €2.2bn disclosed by it as recently as February 2018. The CBRE valuation is part of the investigation of the validity and recoverability of certain non-South African assets...
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