BERLIN/JOHANNESBURG (Reuters) - South African-based retailer Steinhoff (SNHJ.J) (SNHG.DE) suffered a fresh blow on Tuesday after a real estate specialist put the value of a portfolio holding a major part of its property assets at 1.1 billion euros ($1.4 billion) less than previously estimated.
Steinhoff, which has more than 40 retail brands including Conforama, Poundland and Mattress Firm, faces a fight for survival after in December admitting accounting irregularities, wiping about 85 percent off its market value and throwing it into a liquidity crisis.
The company said it was likely that the book value of its Hemisphere portfolio, which holds about 140 property assets, was lower than it had previously estimated following a valuation by CBRE, a commercial real estate services and investment firm.
Steinhoff had valued the portfolio at 2.2 billion euros, but CBRE put it at 1.1 billion, Steinhoff said in a statement.
“The company will consider CBRE’s valuations in detail and will work with its auditors to determine the consolidated net book value of the Hemisphere Portfolio for the purposes of publication of the company’s consolidated financial statements for 2017,” it said.
Hemisphere’s properties include stores, warehouses and offices across Austria, Germany, the Netherlands, Switzerland, Britain and eastern Europe.
($1 = 0.8151 euros)
Reporting by Victoria Bryan in Berlin and Tanisha Heiberg in Johannesburg; Editing by Edward Taylor and David Holmes