The operation consists in financing the acquisition of a backyard building located in the 3rd district of Lyon, at 6 rue Paul Bert, in order to divide it, renovate it and resell the 11 apartments.
The acquisition of the building and the resale by lots will be carried out by SAS PROJECT'IMMO. The operation will be carried out in "VIR" (Sales of Buildings to be Renovated) allowing the purchasers to deduct the share of the work from their rental income. The work will be paid for by the purchaser as it progresses.
Located in Lyon 3rd arrondissement, the location is central, a few steps from the Guillotière Metro stop, between La Part-Dieu and the Lyon peninsula. Place Bellecour can be reached in 10 minutes on foot. The building is located near the Lyon 2 and Lyon 3 universities.
This neighborhood also benefits from numerous local shops and easy access to public transportation.
Only the building at the back of the courtyard is part of the operation.
The building at the back of the courtyard and the building on the street are located on the same plot of land, the buildings are independent, but are governed through a co-ownership.
For the division into lots of this backyard house, it is not necessary to obtain an agreement from the co-ownership, a simple notification to the syndic of co-ownership must be made, not requiring a vote at the General Assembly.
Sales are made with a fixed price for work. The sale price will be split in two:
* The "share of the land" collected on the day of the sale
* The "share of the work" received as the project progresses
The main interior renovation works planned are :
* Laying of cumulus
* Electric radiators
* Change of exterior joinery
* Tile flooring
* Facade restoration
For the restoration of facades, a prior declaration must be obtained.
As far as planning is concerned, it is planned to start work in September for delivery in the 2nd quarter of 2021.
The planned budget is €440,000 including all taxes, i.e. €1,260/sq.m including all taxes. This amount is contractualized in the project management contract which has been brought together under a single contract between :
* Architect: RDO Architectures, an architectural firm in Lyon and throughout the Rhône-Alpes region, has the particularity of bringing together the skills of Architecture and Interior Design.
* Project management: SAS NATIV - Monitoring of the construction site in Lyon.
* Structure studies office: SARL EQUATIONS
* Fluid studies office: M2BE
The proposed price per m² of this operation with the fixed price for the works is 6 891 €/m² it is based on the high scale of the market which is about 5 000 €/m².
The above-average price is mainly justified by the following reasons:
* The apartments are completely renovated
* The VIR (Sale of Real Estate to be Renovated) regime allows to have a tax advantage.
* These are small areas with an average of 32m ² / lot
Since the commercial launch at the beginning of July, 4 lots are already under reservation contract by two purchasers. To be added the two strong expressions of interest that have been pronounced for apartments 0-1 and 2-3.
At a marketing rate of 1 lot per month, pre-marketing should be completed before the delivery of the building, which is scheduled for the end of Q2 2021.
With the cost of the works, the price per m² of the lots of 6 891 €/m² is higher than the average market price of 5 000 €/m².
Without the cost of the works, the average resale price of the land without agency fees for this operation is 4,944 €/m², which is in line with the average market price.
Note that the average is based on older and larger homes.
By looking for references of similar properties for sale, the selling price of compact surfaces remains consistent with the market:
Nb rooms: 2
Area: 29 m²
Price: 229 000€
Price in €/m²: 7 896€/m²
Lyon 3 at the foot of the Courthouse and the T1 tramway, close to faculties, schools and shops. Apartment T2 on the 1st floor of an old building secured by digicode, about 30 m².
Nb rooms 2
Area: 29 m²
Prix : 215 250€
Price in €/m²: 7 547€
This apartment of 26 m² (about 280 ft²) is ideally located. It is equipped with a living room, with a kitchen/dining room and with a toilet. It's located on the 1st floor. It is equipped with a living room.
Nb rooms: 2
Area: 26 m²
Price: 182 000€
Price in €/m²: 7 000€
The operation was carried out by SNC Secret 6 with the capital of EUR 1 000, registered in the Lyon Trade and Companies Register under number 827 569 633, on 8 February 2017.
The bond loan of €1,300,000 will be issued by Project'Immo at an annual rate of 10% per year, for a maximum duration of 24 months.
The bond loan will be amortized and repaid over the course of the sales by the operator, the interests will be paid annually.
In order to provide additional guarantees, the repayment of the bond loan is guaranteed by :
* a first-rank mortgage registered on the unsold lots for the benefit of the mass of bondholders represented by Raizers, covering a sale price per m² of €4,495 (vs forecast between €6,890/m² and €6,500/m²)
Sample calculation for the repayment of an installment:
The issue date of the bond is August 5, 2020.
The lot 0-4 is sold 4 months later, then Project'Immo will pay back to the investor realizing 10 000 € of investment:
* 11% of the capital loaned, that is to say 1 100 € paid back the day of the sale of the apartment
* 6 months minimum interest at an annual rate of 10%, i.e. €55 of interest (€1,100 x 10% annual/12 months x 6 months)
Please note that each instalment repaid must produce a minimum of 6 months' interest. On current marketing, for the 4 lots already reserved, even if the final sale takes place before February 5, 2021 (6 months from the date of issue), each reimbursed instalment will have to produce a minimum of 6 months of interest.
* If the 4 reserved lots are sold, the bond loan will be reimbursed up to 46%, i.e. €598,000
* If the 2 optioned lots are sold, the bond will be reimbursed up to 20%, i.e. €260,000
When the bond and its interests will be reimbursed at 100%, the 1st rank mortgage will no longer be registered on the remaining lots.
This operation is carried out through the SNC Secret 6, which has just been formed, with PROJECT'IMMO as the main partner at 99%.
The operation is led by the company SASU Project'Immo directed by Anaïs EL BAZE. The company operates real estate transaction activities and also carries out one to two transactions of property dealers per year.
Mrs Anaïs El Baze is carrying out this operation alongside Mr Kévin El Baze's structure, ELB Promotion, which has already been financed via other companies by Raizers.
Mr El Baze has been in the real estate sector for more than 10 years. He has always evolved in this field, especially with his father who was also in construction and building. His expertise is based on the rehabilitation of existing buildings with a view to reselling them as a block or cut to size. With the network he is developing, he brings the investments and carries out the real estate operations himself.