(Bloomberg) --
Cevdet Caner's family ramped up their stake in embattled German landlord Adler Group SA after short sellers questioning the entrepreneur's role in the company triggered a steep price drop last year.
Gerda Caner, the wife of the Austrian investor, disclosed a 7.44% stake in Adler Group on Friday, reinforcing “her belief and long time commitment” to the “continuation of the successful development of the company,” a family spokesperson said in an emailed statement to Bloomberg News on Tuesday. Family members including Gerda also hold stakes in Mezzanine IX, an investment vehicle which owns 4.78% of Adler, according to Bloomberg data.
Caner's family is doubling down on Adler just months after the firm was targeted by short-sellers including Viceroy Research, which raised questions over Caner's role at the company and accused it of being built on systemic fraud. Adler's shares fell 62% in 2021.
The landlord denies the charges and moved to sell some of its assets to help cut its debt levels.
Read More: Adler's Key Investor Speeds Up Asset Sales Amid Financial Crunch
In October, the loss in share value prompted Adler's largest shareholder Aggregate Holdings SA, an investment vehicle owned by entrepreneur Guenther Walcher and advised by Caner, to refinance a margin loan with Vonovia SE. Fairwater Capital, Adler's second largest shareholder with a fund majority-owned by Aggregate, also sold most of its stake days later.
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