(Bloomberg) — Real estate investor Aggregate Holdings SA is seeking to allay concerns of alleged unlawful dealings raised by a short seller by offering some financial firms a detailed look at a paid report that finds no evidence to support the claims.
Aggregate had commissioned law firm Hogan Lovells to draft a report as it sought to counter Viceroy Research’s accusations of wrongdoing in certain real estate deals with Adler Group SA and about the role of Austrian tycoon Cevdet Caner. The firm, which announced the broad findings from the report last week without revealing its actual contents, is giving some banks and investors the opportunity to see a more detailed version if they sign a non-disclosure agreement, according to a letter seen by Bloomberg.
Aggregate is seeking to mend relationships with key backers as it faces payments to bondholders. The firm and its owner Guenther Walcher have come under fire in recent months as Viceroy’s Fraser Perring targeted Adler, one of its largest investments. Perring accused Caner –an adviser to Aggregate whose family owns stakes in Adler– of leading an opaque “cabal of kleptocrats” who have stripped the firm of value. Adler and Caner have rejected the allegations.
‘Commercial Rationale’
Viceroy’s main allegations related to the overarching, decision-making role of Caner and how he and his ‘inner circle’ used Aggregate and others to loot outside shareholders through transactions.
Hogan Lovells said it found “no evidence to support the key allegations” about Caner and the deals, which have a “commercial rationale,” according to the report seen by Bloomberg. The law firm deferred some of the questions raised by Perring’s report to Adler and other companies involved in the deals.
Here are the main transactions criticized by Viceroy and reviewed by Hogan Lovells:
Aggregate’s CG Group sale to Consus Real Estate, a company Aggregate controlled until it was merged with Adler Real Estate in 2020
Aggregate bought a stake in the company at 49 million euros ($56 million) in 2016 and brought it to Consus at 872 million euros a year later for Consus’ shares, creating an artificial profit, Viceroy alleged
Hogan Lovells said that while the “increase is very substantial, CG Group was in a distressed situation but with excellent and undervalued commercial and residential development projects”
An investment of Adler’s unit Brack Capital into Consus
In 2018 Brack acquired 4.1% of an unrelated listed German real estate developer for 35 million euros and identified the developer only later as Consus. Aggregate “profited greatly from this purchase,” Viceroy alleged
Hogan Lovells said Viceroy doesn’t explain in what way Aggregate profited or how the transaction was inappropriate, hence couldn’t be investigated further
Aggregate’s signing of options with ADO Properties
Viceroy said Aggregate was granted a put option to sell its stake in Consus in 2019, an “asset no-one wanted,” to ADO Properties, looting ADO’s shareholders. The transaction was criticized by some investors and a member of the German parliament, Fabio de Masi. ADO eventually merged with Consus and Adler Real Estate, becoming Adler Group, in 2020
Hogan Lovells said the majority of allegations are directed at Adler, Consus and ADO, “to which Aggregate did not have preferential or special access. To the extent that the allegations refer to Aggregate, it is believed that this was the right exit from the investment in Consus”
Consus Real Estate asset disposals
Viceroy says Consus Real Estate sold development projects to Partners Immobilien Capital Management, owned by what it calls a character with criminal ties, and Groener Group, controlled by Consus’ former CEO, in transactions that looted Consus’ outside shareholders
Hogan Lovells says there “does not appear to be any involvement by Aggregate” in the Consus disposals and that Aggregate and its owner Walcher didn’t “consider this to be anything other than proper arm’s length sale process”
The tie-up drew a backlash at the time from lenders who said the deal breached terms
Brief Rally
Aggregate bonds briefly rallied last Wednesday after it said Hogan Lovells investigation had ended, but pared gains by the end of the week. Its 2025 notes are indicated at about 59 cents on the euro, according to data compiled by Bloomberg.
In the letter to banks and investors, Aggregate also pointed to a November court ruling that ordered Viceroy to no longer use four passages in the report that discuss Walcher’s relationship with Caner.
Read More: Adler Short-Seller Told to Cut ‘Untruthful’ Details From Report
The Hogan Lovells’ report also brings forward a range of allegations against Viceroy Research. The report alleges that their work “varies widely in quality” with some elements “relying on little more than anecdotes, smear campaigns.” It also says Viceroy’s targets are “subject to significant short selling before its research is released, primarily by Viceroy itself or related parties.”
Adler denies the charges made from Viceroy but is yet to respond officially to the allegations. The firm said last month that its results would be delayed to give auditor KPMG more time to deliver a forensic report that examines the allegations. Adler is under investigation by German financial watchdog BaFin over potential balance sheet irregularities.
In response to Hogan Lovells’ findings Perring said, “Viceroy are unable to comment on the unpublished report. We stand by our report that is extensively referenced and consider the lack of company response to be significant. Hogan Lovells’ report and mandate should be published in full.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
