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  "documentTitle": "Vivion Investments",
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  "authorName": "Carson Block",
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  "presentationDate": "2023-03-28 00:00:00",
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      "text": "Vivion's specific rebuttal to rent24's significance at Fürst illustrates how misleading Vivion's responses about rent24's occupancy are.",
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      "text": "Vivion's specific rebuttal to rent24's significance at Fürst illustrates how misleading Vivion's responses about rent24's occupancy are. In its presentation, Vivion downplays the amount of its rental income generated by rent24, presenting rent24's tenancy and contribution to total portfolio rents based on manipulated numbers. In the case of Fürst (aka Ku'damm), a major Berlin development, Vivion divides rent24's rented area by 108,000 sqm of lettable area to calculate its rental percentage figure. But at the time of the rental, only ~22,000 sqm had been completed. Vivion claims to follow the \"market standard\" for measuring occupancy, but the ERPA standard measuring vacancy specifically excludes areas under development.",
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      "text": "leased ~37% of the building Potsdamer Straße 180-182. In our initial report, we explained that these three Potsdamer properties contain significant vacant space. Based on our site visits, not only was rent24 a major tenant in two of these buildings, but ~37% of the space in the three properties are unoccupied. The three properties are composed of five separate addresses, of which two addresses (Potsdamer Straße 180 and 184) appear to be entirely or substantially vacant.",
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      "text": "Vivion responds that that its total exposure to rent24 in Germany is a mere 2.5% of Vivion's 2022 revenues, but our calculations show much greater exposure by lettable area. In the appendix, we provide a table that illustrates our estimates of rent24's significance to Vivion's German business, ranging from 6.8% to 10.7% of Vivion's future, 2020 in-place rent as at the end of 2019.",
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      "text": "Vivion also says that the Founding Shareholders divested their share of rent24 in 2017, but provides no evidence of this. Instead, Vivion increased the scope of its partnerships and collaborations with rent24 into new locations and a far-fetched crypto project, which is not an action we would expect to see by an investor subsequent to divestment. Further, our review of rent24 company filings found that Dayan held—and, we believe, continues to hold—his interest in rent24 via Drastemo Limited, which itself is held by a nominee shareholding company established and managed by the Cyprus legal firm KKPlaw. The entity, KKPlaw Nominees Ltd.. continues to hold a 70% stake in rent24 through its company Drastemo Limited.",
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      "kind": "source-note",
      "text": "Footnotes 23-33 detailing sources for the claims made in the text.",
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