Vivion - comment

The follow-up to the December short-seller report on Vivion, reiterated some allegations of aggressive valuation alleged in the original. There are some uncomfortable issues around the re-valuation of the Potsdamer Str assets when they were injected into Vivion. The lack of transparency has provided fuel for the short-seller, but this is an allegation that is echoed through much of European Real Estate. As we noted in the previous report, void rates were worse than we expected but not catastrophic. We will produce a more detailed email in the next couple of days.

We see an amend and extend on the bond stack as the most obvious solution for Vivion, an unattractive proposition for the company, but Vivion has cash, and removing maturity concerns will be a considerable boon. Maybe an asset sale to demonstrate valuation accuracy could also help... allowing daylight in upon the magic.