Filing of Complaint with ICAC Regarding Realia Business, S.A.

LONDON, Jan. 14, 2019 /PRNewswire/ -- Polygon Global Partners LLP today announces that it has filed a public complaint with the Institute of Accounting and Auditing (Instituto de Contabilidad y Auditoría de Cuentas) (ICAC) with respect to the financial statements of Realia Business, S.A.  Concurrently with filing the complaint with the ICAC, Polygon provided a copy to the Comisión Nacional del Mercado de Valores and has also notified the members of Realia's Audit Committee and Realia's auditors.

In its complaint to the ICAC, Polygon explains its concerns regarding the use by Realia of the Order ECO 805/2003 of 27 March (ECO) to value Realia's residential real estate holdings, and in particular, the use of this methodology as the basis for the preparation of the consolidated annual accounts of the company.

Polygon considers that the application of ECO to Realia's residential real estate holdings is improper and that the RICS Valuation – Global Standards 2017 (the RICS Red Book) (RICS) is the appropriate valuation methodology for use by a company, such as Realia, that has adopted IFRS standards in its financial statements.  Polygon submits that the use of ECO rather than RICS has resulted in a significant understatement of the value of Realia's residential real estate holdings and, in so doing, has failed to present a true and fair view of Realia's assets as required by international accounting principles and international auditing standards.

Polygon today also announces that it has commissioned an independent real estate valuation firm to produce a report valuing Realia's residential land bank (which is currently valued using ECO) on a RICS basis – the report will be made on an asset-by-asset basis and will cover in excess of 90% of Realia's total residential real estate holdings.

Contact: Polygon Global Partners LLP ([email protected])

SOURCE Polygon Global Partners LLP