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Macro Location Analysis
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Purpose of the loan
The Jardins d'Emilie operation is being carried out by the Groupe Uniti, a listed group with a valuation of nearly €21 million. The developer has specialised 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 operation is located in Saint-Jory, on the outskirts of Toulouse. It comprises two areas:
* West area: 62 social housing units in 6 buildings comprising 51 flats and 11 villas, as well as 81 parking spaces. The complex is being sold in block to the social landlord 3F. The area also includes 15 building plots that are currently being marketed.
* East part: 67 detached villas sold on a freehold basis, notably to investors for tax exemption. Currently, 47% of the plots are sold and a further 25% reserved.
Work on the 129 housing units (East and West zone) began on 24/10/2019.
Two loans were taken out in 2018, at the beginning and upstream of the operation, the duration of which was extended for several reasons: extended bidding period, delayed acquisition of the land, a period of a health crisis, bad weather. Raizers intervenes to refinance part of this debt that has reached maturity, the other part having already been repaid or will be repaid in the first half of 2021.
West zone (collective and individual social and building plots)
The "Square Cristal Ouest" housing estate comprises two zones:
* The social housing zone which includes 51 housing units divided into 6 collective buildings, 11 villas and 81 air parking spaces
* The building land zone: 19 building plots (4 of which are part of the allotment but are not owned by the operator)
East zone (individual free accession)
The "Square Cristal Est" allotment consists of 67 individual villas and 67 parking spaces.
The declaration of the opening of the building site was filed on 30/08/2019 and work on the 129 dwellings (east and west zone) began on 24/10/2019.
On 24/08/2020, the project manager certified the completion of the raising of the walls of the villas (East zone) corresponding to the call for funds 4 "Raising the walls" (65%). The calls for funds paid correspond to €5,289,613 (on recorded sales).
On 07/08/2020, the project manager certifies the completion of the foundations in the West zone (social zone), corresponding to call for funds 2 "Completion of foundations" (35%). The calls for funds paid correspond to 2 802 791 €.
State of the building site to date:
A Future State Sale for Completion (VEFA) was signed with the social landlord 3F Occitanie on 19/10/2019 for the acquisition of the entire social part. Delivery, initially scheduled for September 2021, has been postponed to June 2022. The operator has been delayed, notably due to the health crisis and bad weather in the area. The operator has set aside a provision for the maximum penalty, i.e. €400,000 including tax.
3F Occitanie is one of the regional companies of 3F, the leading social housing company in France (Groupe Action logement). It manages 7,000 low-rent housing units in the Occitanie region. In 2019, 3F is investing €1.4 billion in the renewal and improvement of its housing stock. The company has also launched the construction of more than 7,745 additional housing units.
The operator's intention was to market the building plots once the work was well advanced and it has therefore started recently. The operator has two interests in two plots of land.
The general state of commercialization
76% of total turnover, i.e. €20,955,601 of marketing out of a total turnover of €27,407,107 and including :
* 29% of block sales, i.e. €8,401,636 including tax.
* 47% of the sale of the villas, representing €12,947,626 including tax (registered and reserved lots)
To date, the registered lots (block and villas) represent €16,409,611, i.e. 76% of the acquisition cost. Reserved lots represent an additional €4,545,990, i.e. 21% of the acquisition cost.
Level of marketing of vacant villas and building plots
* Building plot: no commercialization to date
The plots are between 300 and 500 m² in size and sold at an average price of 233 €/m².
* Sale of the villas:
The villas are sold between 207 000 € and 297 000 € for surfaces of 65 m², 84 m², 87 m² and 93 m² of type 3, 4 and 5.
The operation is located 1.5 km from the center of Saint-Jory (20 minutes on foot and 4 minutes by car) and all amenities are on the way: supermarkets, schools, colleges, bank, pharmacy, bakery, etc.
Saint-Jory train station is 2 km away and can be reached on foot (25 minutes), by car (5 minutes and parking on site), or by bus (line 105 10 minutes away on foot). Toulouse train station is 13 minutes away. The A62 is 6 minutes away and allows you to reach Toulouse-Blagnac airport in about 20 minutes by car and Toulouse city center in 30 minutes.
The average price of the villas is 27% higher than the market price. However, they are new properties on a comparative basis based on new and old properties. The marketing of 72% of the program enables the consistency of the selling price to be validated.
The price per square meter of social housing sold is below-market prices for several reasons: the very social nature of the housing and the block purchase by a social landlord.
The average price per m² recorded by terrain-construction.com for building land is 200 €/m² around Saint-Jory. Therefore the average price of the operation at 233 €/m² is consistent with the market price.
The transaction is being carried out by SASU Les Jardins d'Emilie, with a capital of 100 euros, registered with the Montpellier Trade and Companies Registry under number 820 367 613, on 18/05/2016.
SASU Les Jardins d'Emilie, which carries out the transaction, is wholly owned by its parent company, SA Uniti.
The bond will be issued by SASU Les Jardins d'Emilie at an annual rate of 9% per annum for a period of 24 months. The bond will be repaid 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 :
* Uniti SA First Demand Guarantee
The bond contract provides for early redemption if :
* The call for funds corresponding to the delivery stage is issued for the block sale and/or cut sale part of the contract.
* Payment or payment of any sum or invoice due to the Uniti Group, in particular, management fees or similar fees
All the documents associated with this fundraising are available in the "documentation" tab.
As soon as the building permits were obtained, two bond loans of €2,000,000 and €2,500,000 respectively were subscribed to accompany the Les Jardins d'Emilie operation.
Repayment of the €2,500,000 loan will take place from 31/01/2021 and will be spread over 5 months. It will be covered by the calls for funds made on the block sale and sale of the villas.
The €2,000,000 loan has been partially repaid and Raizers is intervening to refinance part of this debt, subscribed in advance and for which maturity has been reached.
Uniti is a developer specializing in the construction of intermediate and assisted housing: social housing, student hostels and retirement homes. 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. Since the creation of Uniti in 2012, he has been its Chairman and Chief Executive Officer.
* PGIM Real Estate is a subsidiary of PGIM, the international asset management business of Prudential Financial, Inc. with assets under management of USD 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.
Focus on the company carrying out the operation, SASU Les Jardins d'Emilie
Balance sheet SASU Les Jardins d'Emilie
Income statement SASU Les Jardins d'Emilie
Focus on the company giving its First Demand Guarantee, SA Uniti
Consolidated balance sheet Bilan SA Uniti
Consolidated income statement SA Uniti