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Macro Location Analysis
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Loan To value
The Saint-Alban transaction is being carried out by the Uniti group, a listed group with a valuation of nearly €21 million. The developer has specialized for more than 8 years in the construction of intermediate and assisted housing: social housing, student residences and senior residences and operates throughout France.
The group plans to build an 82-unit retirement home and 43 parking spaces in Saint-Alban, a town 13 km north of Toulouse.
The VEFA deed will be signed by mid-December at the latest and work will begin in January 2021. Delivery is scheduled for January 2023, with operations starting in February 2023.
SAS Symbiose is carrying the transaction and the UNITI group is providing its First Demand Guarantee to secure the bond issue.
The Capitalium Real Estate funds by Raizers invest 414 000€ in this operation.
* A LOI (Letter Of interest) is a pre-contractual document by which the parties to a negotiation define the limits and framework of the negotiation and express their intention to reach a conclusion.
This senior service residence has 81 independent dwellings as well as a caretaker's dwelling, built on 5 levels (R+4) and is composed of:
* 31 T1 (including the caretaker's dwelling), i.e. 33% of the dwellings
* 39 T2, i.e. 50% of the dwellings
* 12 T2 bis, i.e. 17% of the total housing stock
A restaurant will be located on the ground floor and the residence will have 43 outdoor parking spaces.
Tenders for the execution of the work are currently being issued.
The budgeted amount of €1,176 excluding VAT/sq.m., excluding fitting-out and VRD (Roads and Miscellaneous Networks), is consistent with market prices and the economies of scale that the group can achieve.
100% of the lots are pre-sold to Primonial under the partnership agreement signed between the Uniti group and Primonial on 10/07/2020. This agreement provides for the acquisition of a portfolio of 20 senior residence projects to be developed in France.
The provisional schedule of calls for funds provided for under the LOI issued by Primonial is as follows:
Under the terms of the agreement signed between Uniti and Primonial, the operation of the senior citizens' residences has been entrusted to Aquarelia, an operating company owned by Stéphane Oria's holding company. The company currently operates 4 residences and 10 others are under construction.
The State of Future Completion Lease is concluded for an 8-year farm, for an annual rent of €422,000 excluding taxes/charges.
The rents offered by Aquarelia to future residents are as follows:
The rent includes the following charges: water, electricity, heating, catering (lunch and dinner), entertainment, medical and paramedical coordination, 24/7 security assistance.
Saint-Alban is a commune in the Toulouse Urban Area, which comprises 452 communes with a population of 1,345,343 inhabitants. The Toulouse Urban Area is ranked as the 4th most populated area in France, just behind Paris, Lyon and Marseille. It includes the Toulouse Metropolis. Saint-Alban is located 13 km north of Toulouse. The town borders 6 communes in the Toulouse suburbs.
The residence is located 1 km from the city center of Saint-Alban and is connected by bus line 60. The bus line 60 also connects to the metro station "La Vache" (line B), which takes you directly to Toulouse.
A supermarket, a bakery and a pharmacy are located 4 minutes away on foot.
The market environment around Saint-Alban is conducive to the establishment of a Seniors Services Residence for several reasons:
* The proportion of people over 75 years of age in the population of Saint-Alban is 5%, i.e. 6,350 people today.
* The rate of increase in the number of senior citizens in the 75-84 age group in the Saint Alban area will be 86% in 2030, i.e. 11,800 people, with the arrival of the "papy-boomers", a population class over 75 years of age, the core target group for senior service residences, which will intensify the rate of growth of the senior population at least until 2030 in the sector.
* The offer of accommodation in senior citizens' residences is low in the Saint-Alban area: only one residence is operated in Aucamville (3.9 km from Saint-Alban).
The transaction is being carried out by SAS Symbiose, with a share capital of €100, registered with the Montpellier Trade and Companies Registry under number 851 973 594, on 09/08/2019.
SAS Symbiose, which carries out the Saint-Alban transaction, is wholly owned by its parent company, SA Uniti.
In order to comply with the regulatory provisions governing bond issues, SA Uniti, 57.1% owned by SASU ETS Oria, 34.7% by SASU Silver Holding (PGIM) and 8.2% by other bondholders, will provide its First Demand Guarantee.
The bond will be issued by SAS Symbiose at an annual rate of 9% per annum for a period of 24 months. The bond will be redeemed in a fine by the operator, with interest paid annually, but guaranteed for a minimum period of 6 months.
In order to provide additional guarantees, the repayment of the bond loan is guaranteed by
* First Demand Guarantee from SA Uniti
The bond contract provides for early redemption if:
* Delivery of the transaction: upon payment of the call for funds corresponding to "On Completion and Delivery and Handover of the Keys".
All the documents associated with this fundraising are available in the "documentation" tab.
As soon as the VEFA is signed in December, a call for funds of 25% of the acquisition cost will be made from Primonial. Subsequently, regular calls for funds will enable the financing of the works and ancillary costs until delivery.
Uniti is a developer specializing in the construction of intermediate and assisted housing: social housing, student residences and senior residences. On 31 December 2019, the group, listed since 2015, had sales of more than €70 million (+37% since 2018) and a net profit of €1,594,000. The group's net assets amounted to nearly €114 million. The group's current valuation is close to €21 million.
In 2019, Uniti delivered 419 housing units through 9 programs and 1,077 housing units were under construction with an order book of more than 4,000 units to come.
The group is currently owned by founder Stéphane Oria, via his holding company ETS ORIA, and the investment fund PGIM real Estate, via its holding company SILVER HOLDING :
* Stéphane Oria, a shareholder of SASU ETS Oria, comes from the single-family home construction business. He has been Chairman and Chief Executive Officer since the creation of Uniti in 2012.
* PGIM Real Estate is a subsidiary of PGIM, the international asset management business of Prudential Financial, Inc. with assets under management of $1,300 billion. PGIM Real Estate is one of the world's largest real estate investors with $179.2 billion in gross assets under management and administration*. The fund acquired a stake in Uniti in July 2019 via SAS Silver Holding.
In addition to the financial investment, this is a true strategic partnership, with PGIM Real Estate bringing its expertise as an investor in different real estate asset classes. It is the ideal partner to accompany the growth of the Uniti group.
Zoom on the company issuing the bond: SAS Symbiose
Balance sheet SAS Symbiose
Income statement SAS Symbiose
The result is zero.
Zoom on the company giving its First Demand Guarantee: SA Uniti
Balance sheet SA Uniti
Income statement SA Uniti