After The Raid On The Ministry of Finance

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SPD candidate for Chancellor Olaf Scholz is under pressure

The “governance” criterion plays an important role in ESG ratings for states. Not only credit ratings are influenced by good governance. Finance ministries have a crucial role in this.

The Osnabrück public prosecutor’s office searched the Federal Ministry of Finance in Germany this week. The Federal Ministry of Justice was also in the sights of the investigators. The background to this is an investigation against those in charge of the Financial Intelligence Unit (FIU), a special unit of customs against money laundering.

As “Spiegel” reports, German weekly news magazine published in Hamburg, there is a suspicion of thwarting punishment in the office. The FIU allegedly failed to properly forward money laundering reports from banks to law enforcement authorities.

“The FIU is a bunch of chaos. Finance Minister Olaf Scholz has not got the business under control in the past four years. That is his responsibility,” said FDP financial expert Frank Schäffler, commenting on the events.

The conditions are alarming and particularly relevant in light of the fact that the Federal Minister of Finance is currently applying for chancellorship in Germany in the federal election campaign.

A Supermarket Portfolio Not So Super

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A B (Single B) is shown on the Expo rating scale. In his Investmentcheck-News KW 36/2021, Stefan Loipfinger comes to a different conclusion, mainly due to the lack of willingness to provide information.

The Exporo classification measures the relative risk using important criteria that are of great importance when making an investment decision in the real estate sector. Points are awarded for six criteria – the more points, the higher the assessed risk. “It should be noted”, warns Exporo, “that the Exporo class represents a strong simplification of complex relationships and under no circumstances can all the risks that a property or a real estate project entails be considered. Investors should therefore not use the Exporo classification as the basis for their decision.”

“The supermarket portfolio” are securities without sales prospectus (WIB according to §3a WpPG or PRIIP). The capital is passed on to Wohninvest Holding GmbH. The project company 1, the WI Objektgesellschaft 100 GmbH & Co. KG, the project company 2, the WI Objektgesellschaft 82 GmbH, the project company 3, the WI Objektgesellschaft 84 GmbH & Co. KG and the project company 4, the WI Objektgesellschaft 98 GmbH & Co. KG the borrower to the Wohninvest group of companies. The project companies are planning to carry out renovation measures on the respective properties.

Exporo sees a “very experienced developer (Wohninvest Group) with whom Exporo has already successfully financed 12 projects, 6 of which have already been repaid.” Here are more of Exporo’s “keyfacts:

  • The traditional food retailing market is stable and, according to the Retail Real Estate Report, properties with a focus on local supplies are in great demand.
  • Established and strong tenants with constant cash flow who did not suffer any losses during the pandemic.
  • Rents are at market level and the leases are indexed; average lease term is 8 years.
  • Well-maintained condition of the portfolio; Necessary maintenance measures on the objects are factored in.
  • Abstract acknowledgment of debt in the amount of the loan.

In Stefan Loipfinger’s view, the documents provided are not sufficient for a qualified investment decision. In the opinion of Investmentcheck, in addition to the investor information sheet in accordance with Section 13 of the VermAnlG, further documents with the information of a sales prospectus as defined in Section 7 of the VermAnlG should be made available.

Investmentcheck transparency rating:

Rating: 3 out of 5.

Investmentcheck has published the company’s answers: “Thank you for your request. When presenting the existing properties and financing projects on our platform, we attach great importance to transparently providing all information that investors need for their investment decision. This information can be found publicly for each project on the respective detail page on our platform. I would therefore like to ask for your understanding that we cannot answer the standardized inquiries due to the considerable additional work involved ”.

Accordingly, “willingness to provide information” and “placement numbers” did not receive a single star at investmentcheck.de.