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Macro Location Analysis
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Purpose of the loan
This is the financing of a 210 m² apartment with a private terrace of 20 m² in the context of a sale with a buy-back option for an amount of 2 400 000 €. The flat was appraised on September 30, 2020, by Crédit Foncier Immobilier at a price of €4,550,000.
The flat is located at the intersection of rue de Courcelles and avenue Hoche, Paris 8th arrondissement, overlooking Parc Monceau.
The transaction is a sale of a property leaving the initial seller the option to buy it back within a set period of time, at a price fixed in advance.
Regulated by the French Civil Code, the sale with a buyback option mainly enables the initial seller to have access to cash quickly.
For Raizers investors, the main advantages of this transaction are:
* The valuation of the property acquired makes it possible to cover the amount loaned
* Interests paid in advance into an escrow account
* Interest will be distributed semi-annually
For this transaction, the managers of the EIM group - which specializes in arranging property refinancing through security trust or sale with a buyback option - created a dedicated company, SAS EQC M2, with the aim of acquiring this apartment in Paris 8.
Before November 30, 2020:
The Raizers bond issue will enable to pay the acquisition price of €2,400,000 by EQC M2, a wholly-owned subsidiary of the EIM Group.
An occupancy indemnity of €336,000 (corresponding to 24 months' interest at 7%) will be sequestered in an account to secure the payment of half-yearly interest for the next 24 months.
In the case of non-reimbursement after 24 months:
In the context of this sale with an option to buy back, if repayment is not made 24 months after the acquisition date, SAS EQC M2 will be free to sell the property at the desired price, in order to repay the bond loan in priority.
In the event of a sale, a 15% share of the capital gain will be paid to the Raizers investors.
This apartment is on the 3rd floor of a private mansion, under the rooftops.
It has a larger floor area than its 200 m² Carrez surface due to the slope of the roof. It is distributed without separation from an entrance gallery leading laterally to a dining room and an en-suite bedroom, a guest toilet, then a large living room, partly double height. The front part of the building with dormer windows and bull's-eye windows receives a mezzanine library-study, a dining-kitchen, a separate laundry room, and a master suite occupying the other side with a bedroom, bathroom and dressing room.
The marketing of the flat will be launched if the seller's assets do not allow the bond loan to be repaid.
The desired selling price is €5,500,000 for this 210 m² flat with a 20 m² terrace.
The price estimated by Crédit Foncier Immobilier at €4,450,000, i.e. €21,493/m², is in the upper end of the market, as this is a unique flat directly overlooking Parc Monceau and offering a 20 m² terrace.
The acquisition cost of this flat for EQC M2 is 2 400 000 €, i.e. 11 321 €/m², or 54% of the estimated selling price.
On the 5th floor of a beautiful stone building, magnificent flat completely renovated, sold turnkey furnished and equipped. It comprises an entrance hall, a vast double living room opening onto a large balcony with a sublime and unobstructed view of the Eiffel Tower, the Seine and the Russian Cathedral. A superb open kitchen with a luxurious wine and cigar cellar is perfectly integrated into the reception area. This luxury flat also features an air-conditioned master suite with a double dressing room, a shower room with a hammam, a mirror TV and a video projector. Two other bedrooms share a beautiful bathroom. Two service rooms are available on request. A cellar completes this offer. All the luxury boutiques on Avenue Montaigne and Avenue George V are a two-minute walk away.
Nb rooms: 5
Area: 155 m²
Price: 3 950 000€
Price m² : 25 483 €
Paris VIIIth arrondissement - Garden level - Parc Monceau. Exclusive. View on the Parc Monceau. In a sumptuous mansion emblematic of the Plaine Monceau, built by the architect Gustave Clausse in 1870, this 160 m² flat enjoys a private garden of nearly 60 m². It comprises an entrance hall, a corner lounge, a dining room, a fully-equipped kitchen, a study, 2 bedrooms, a dressing room and two bathrooms. The flat, in perfect condition, has retained its original features and a ceiling height of 3.50 m; it also has a large cellar and a parking space in the courtyard.
Nb rooms: 5
Area: 156 m²
Price: 3 300 000 €
Price m² 21 153 €
The bond will be issued by SAS EQC M2 at an annual rate of 7% per annum for a period of 24 months.
In order to comply with the regulatory provisions relating to the bond issue, SAS EQC M2 has carried out an asset-liability review of its activity.
To provide additional guarantees, the repayment of the bond issue is guaranteed by:
* Promise of mortgage assignment on the flat
* Irrevocable transfer order to the notary on the flat
* Prohibition to alienate registered on the property and right of pre-emption
* Occupancy payments blocked in an escrow account
* Pledge of shares in SAS EQC M2
If the seller does not activate its redemption option, SAS EQC M2 will pay 15% of its net capital gain to the RAIZERS lenders in addition to the repayment of the capital loaned and the interest already paid.
All the documents associated with this fundraising are available in the " documentation " tab.
Groupe EIM has specialized in arranging real estate refinancing by way of a security trust or sale with a buy-back option.
A company is set up by the EIM Group for each transaction. It then finances the equity capital of the structures dedicated to the operations through a bond loan.
The Managing Partner 1, Mr. Camille Marne, co-founder of the EIM Group created in 2018
He has 10 years of experience as a property trader, co-investments in club deals and mezzanine financing with property traders (more than 15 operations and €18 million of investment in private debt). He has also spent 15 years in wealth management, private banking and real estate financing (Société Générale, JyskeBank, then independently).
Managing Partner 2 is the co-founder of the company.
He has 8 years of experience as a property trader, co-investments in club deals and mezzanine financing with property traders (more than 25 operations and €15 million of investment in private debt). He also has 17 years of experience in wealth management, private banking and real estate financing (BNP Paribas, BIL, then freelance).
Balance sheet ASSOCIATE 1
Income result ASSOCIATE 1
Balance sheet ASSOCIATE 2
Income result ASSOCIATE 2