Adler/Aggregate - comment

The shareholder today confirmed a reduction of its stake in Adler from 26.6% down to 6.1% following Vonovia’s foreclosure of its €250m margin loan against Aggregate Holdings Invest S.A. Once again, this does not change the economics at Aggregate, but it should have an impact on Aggregate’s standing and ability to keep its financings together. The developer has to find a buyer for the SSNs in Fürst, which we think should only require a low double-digit cash sum, but which carries a steep downside if Aggregate fail to execute and it needs to refinance its Portuguese subsidiary very soon and probably very expensively.