TAG Immobilien AG (TEG) Chief Executive Officer Rolf Elgeti will transfer his private properties to trustees after the company’s supervisory board said it’s investigating accusations about conflicts of interest.
“I want to counteract the uncertainty that has arisen with all the means at my disposal and underscore that the future of TAG is my top priority,” Elgeti said in a company statement today. “This is my personal decision and I see it as an unequivocal commitment to TAG.”
Welt am Sontag reported on Oct. 6 that Elgeti owns stakes in about 20 companies that buy and manage real estate like the company he heads, causing the shares to fall the next day by the most in four years. On Oct. 9, TAG said it will hire a firm to conduct an external review of the accusations.
TAG, based in Hamburg, is Germany’s sixth-largest residential landlord by market value. It owns 57,000 apartments, most of them in Hamburg and eastern German cities including Berlin.
TAG was little changed at 8.5 euros at 4:35 p.m. in Frankfurt trading.
Elgeti will transfer his properties to trustees by the end of the year, according to today’s statement.
“The legal details of this transfer will be fine-tuned in the weeks ahead,” TAG said.
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