Aggregate - comment

Ahead of its month-end deadline to repay the VIC bonds, Aggregate are engaging in a notable PR effort aimed at raising the value of their QH and Fürst assets. The signings of high-profile tenants certainly suggest that Aggregate are able to transact and develop. However, having sold two blocks within QH to Vivion in return for their holding of 2024 notes and more time to repay the Fürst bond, Aggregate now have to close a deal that we expect to hut. In a market where cash transactions have been rare, either VIC bondholders will agree to take another kind of exposure elsewhere, or something needs to be sold for the rare commodity that is cash and therefore at a discount.