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Macro Location Analysis
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Purpose of the loan
The operation is being carried out by the Bourbon Développement group, a family business specializing in property development, but also in the manufacture of concrete. Mr. Samourgompoulle has over 40 years of experience in construction and real estate in La Reunion Island.
Le Mandarin programme is a 33-unit residential development with terraces and car parks as well as commercial premises, in the immediate vicinity of Saint-Paul city center and all its amenities.
Le Mandarin is located in the heart of Saint Paul's city center, the residence is just a few steps away from the shopping streets and the seafront. The residence Le Mandarin features 33 flats, from T2 to T4, as well as a shop on the ground floor. Each flat has its own fully-secured ground floor car park and lifts serve the upper floors.
Each flat features a living room/equipped kitchen opening onto a terrace or varangue.
All purchasers of the reserved lots have paid a security deposit of €1,500. All of the reservation contracts were signed between May and October 2020 and the VEFAs are scheduled to be reiterated by the end of November.
The total cost of the works is budgeted at 5,035,000€ including tax, i.e. €1,854/sq.m excluding VAT. The works include the roads/network/distribution, foundations, structural works, waterproofing and roofing, partitioning, locksmithing, interior fittings, interior and exterior joinery, electricity and plumbing, kitchens, as well as car parks and varangues.
Zoom on the service providers:
The operator is accompanied by the architectural firm Atelier 8, which drew up all the plans.
The prime contractor is the Isométric company represented by Olivier Levesque, an engineer. It will be in charge of the project management of the operation and will provide assistance with scheduling, steering and coordination.
Commercialization is carried out by several local and metropolitan agencies as well as platforms specializing in tax exemption. The budgeted cost is 11% including tax. Marketing began in April 2020 in the midst of the health crisis and the first reservation contracts were signed in May 2020.
Level of commercialisation:
The lots marketed benefit from the PINEL tax scheme, which is a powerful selling point, which will enable them to benefit from the 2020 income tax advantage. First-time buyers can also benefit from the interest-free loan (PTZ).
* PINEL outre-mer system for individual investors: the Pinel outre-mer 2020 tax exemption law grants a tax reduction of 12, 18 or 21% of the purchase price (up to €300,000), depending on the length of the rental period. This can be 6, 9 or 12 years.
* The PTZ for first-time homebuyers: a means-tested interest-free loan granted by the state, the amount of which varies according to the zone and the number of people in the household.
The properties are mainly sold to purchasers for rental investment.
The price per m² of the 4,003 €/m² transaction is 29% higher than the average market price. However, it remains below the high average of 4,207 €/m².
This higher price is mainly explained by the new nature of the construction (the average price is based on new and old buildings) and the location, 500 m from the seafront. The marketing of almost 54% in 6 months also validates the market price.
The residence is located in the city center of Saint-Paul, close to all amenities (supermarkets, schools, restaurant, hospital, bakery...) and the seafront, 500 m from the residence. The Saint-Denis-de-la-Réunion airport is 38 minutes away by car and the famous boucan Canot beach is 10 minutes away.
The transaction is being carried out by the SCCV Royal Parc, with a capital of €1,000, registered with the Saint-Denis-de-la-Réunion Trade and Companies Registry under number 797 786 704, on 14/10/2013.
SCCV Royal Parc, which is carrying the Le Mandarin transaction, is 95%-owned by its parent company, SAS Financière Bourbon Développement, which will be carrying the bond issue, and 5% by JS Immobilier.
In order to comply with the regulations governing the bond issue, SCCV Royal Parc will provide its First Demand Guarantee to SAS Financière Bourbon Développement.
The bond loan will be issued by SAS Financière Bourbon Développement at an annual rate of 11% per year for a period of 24 months. The bond loan will be repaid in fine, with interest paid annually, but guaranteed for a minimum period of 6 months. The operator has the option, if it wishes, to repay the loan early in tranches of €400,000 (five tranches).
To provide additional guarantees, the repayment of the bond is guaranteed by:
* A first-rank mortgage on the unsold lots to the benefit of Raizers representing the bondholders' estate
* Personal guarantee from Mr. Samourgompoulle Justin
* First Demand Guarantees from SARL Bourbon Développement and SCCV Royal Parc
The bond contract provides for early redemption if:
* Delivery of the operation
All the documents associated with this fundraising are available in the "documentation" tab.
SARL Bourbon Développement is owned by Mr Justin Samourgompoulle and his children, as is SARL JS Immobilier. The company is managed today by Justin Samourgompoulle and his son Padmanabane.
Justin Samourgompoulle, 63 years old, joined the family construction business at the age of 16. He created his first company in 1982, specializing in earthmoving and VRD. In 2005, he launched his real estate development activity via SARL Bourbon Développement, with which he has already completed more than 600 lots. At the same time as the development company, he created Euro Béton, a company manufacturing ready-mixed concrete, notably to supply the Bourbon Développement SARL construction sites. Today, his clients also include GTOI, SBTPC, LEON GROSSE and other SMEs and ETIs. In 2018, he created Euro Concassage in order to strengthen its value chain and control its supply of concrete and raw materials.
Focus on the financial elements of the company holding the bond
SAS Financière Bourbon Développement has just been created and will close its first books on 31/12/2021.
Zoom on the financial elements of the company leading the operation and giving its GAPD
Balance sheet SCCV Royal Parc
Income result SCCV Royal Parc
Zoom on the financial elements of the company giving its GAPD
Balance sheet SARL Bourbon Développement
Income result SARL Bourbon Développement