{ "docId": "019dd923-622c-750b-8b97-5ab109c5e2f7", "docSlug": "dd06256eb138", "documentTitle": "Vivion Investments S.à.r.l.", "authorId": "51_Muddy_Waters", "authorName": "Carson Block", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2022-12-14 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 23, "pageCount": 39, "prevPage": 22, "nextPage": 24, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 6, "notes": "The slide uses footnotes to cite sources for claims about rent24's occupancy and the Fürst property valuation.", "elementsJson": [ "paragraph", "screenshot", "footnote" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b97-5ab109c5e2f7/23", "deckHref": "/decks/019dd923-622c-750b-8b97-5ab109c5e2f7", "deckJsonHref": "/decks/019dd923-622c-750b-8b97-5ab109c5e2f7.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-5ab109c5e2f7#slide-23", "components": [ { "bbox": { "h": 0.11, "w": 0.78, "x": 0.12, "y": 0.3 }, "kind": "callout", "text": "Business Update: The business has remained resilient in the COVID-19 period and experienced strong collection rates. Asset and property management: Leasing activities remain strong across the portfolio. Ku'damm: the first of the 3 buildings (ca 22,000 out of ca 62,000 sqm) is in use per Q3 2020 and is 100% let.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e95e936a-1801-467f-ba75-eb2ffdc735df", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Ku'damm: the first of the 3 buildings (ca 22,000 out of ca 62,000 sqm) is in use per Q3 2020 and is 100% let.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f42-76f3-adbd-39215cb8b02f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.78, "x": 0.12, "y": 0.23 }, "kind": "paragraph", "text": "rent24's lease in 2020 seemingly was critical for the €700 million fair value of Fürst at that time because Fürst would only have been able to have at most ~50% of space leased, (instead of 100%) without the 9,500 sqm lease from rent24.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2da132ae-ea55-48b0-8b46-513f9b1474ea", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.78, "x": 0.12, "y": 0.44 }, "kind": "paragraph", "text": "rent24 also occupied nearly the entire building at Karl-Liebknecht Straße 34 since sometime in 2019 or before. Per Vivion's reports to note holders, Karl-Liebknecht Straße 34 contains 7,900 sqm. rent24's website shows it taking over 7,770 sqm, offering 200 offices, 19 private meeting rooms and 647 coworking spaces. Our investigators visited the site with a Lianeo agent who showed the 8th floor. During their visit they viewed the tenant sign board in the lobby showing the ground, third, fifth and sixth floors were utilized by rent24.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4eb2a977-ac32-4697-8d5a-8de823271317", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.78, "x": 0.12, "y": 0.09 }, "kind": "paragraph", "text": "was to create a massive 9,500 sqm co-workspace with open workspaces, offices, lounges, and rooftop terraces. This large 9,500 sqm space represented 43% of the total 22,000 sqm of Fürst's Phase 1. Of that 9,500 sqm, a large portion was later re-leased back to the Fürst project's own developer and co-owner, the CELLS group. We question why the developer and co-owner would lease its own space from a seemingly outside, third party. rent24 is no longer at Fürst. Mindspace, another Berlin co-working operation, is currently the only co-working tenant in the building.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c99c0a4c-e810-4b75-a698-a99d0d62dfcc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.78, "x": 0.12, "y": 0.56 }, "kind": "paragraph", "text": "The sign board below shows rent24 occupying space throughout the building:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fa78dc28-9e53-4f5d-9054-27ebfbd8eec6", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Ku'damm: the first of the 3 buildings (ca 22,000 out of ca 62,000 sqm) is in use per Q3 2020 and is 100% let. — Vivion Business Update", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f42-76f3-adbd-3e3594ca65e5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.78, "x": 0.12, "y": 0.81 }, "kind": "source-note", "text": "38-43: Citations for press releases, Vivion reports, and website data.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "43fbb4b9-fedf-470e-956a-b964fc96c2c5", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 24, "from": 13, "beatId": "bea4294c-3080-472e-b64c-c99fda51274c", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Struggle", "beatSlug": "overcoming-monster-the-struggle", "evidence": "The document presents evidence of Vivion's inflated financials", "position": 2, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }