Descripton

Operation

The transaction consists of the acquisition of a mixed residential/commercial building located at Touquet-Paris-Plage, 110 rue de Moscou (500 meters from the seafront). The building is composed of 8 units on 1st and 2nd floor, and a commercial premises on the ground floor, all located in a typical Touquet-style building in good outside condition. The building requires interior work before being resold, particularly on the intermediate floors. 

The deed of sale has already been signed and €450,000 has been paid by the operator as part of this acquisition.

This purchase is part of a major project to acquire several adjoining properties in order to develop 23 housing units for a projected turnover of €17,602,000 including tax. The operator is in discussions with the other owners and the town hall of Le Touquet, with several signatures expected during the month of December. Le Touquet town hall has given an initial positive endorsement to the project.

The development of 23 housing units is the hypothesis largely favored by the operator, an option that remains open to carry out the operation as a property dealer. In this case, the operator, if the development project did not succeed, would develop here an operation of purchase and resale in a block of the building after having carried out the works necessary to bring it up to standards.

Our intervention is guaranteed by a first-rank mortgage on the property as well as a guarantee of payment at term from S2C, an Italian insurance company and recurring partner of PM3C. This term payment guarantee covers the full amount of the capital. S2C is jointly and severally liable for the repayment of the capital and expressly waives its right to discussion and division.

Detail of units

Market price

The market in Le Touquet is very disparate, as is often the case in seaside resorts, with prices rising as you get closer to the waterfront. The property is not located directly on the waterfront, but only 500 meters away. The location is therefore very attractive, and its exit price should be at the high end of the local market.

The property is close to the shops and restaurants of the town. The covered market of Le Touquet-Paris-Plage is 200 meters from the building and all the services present in the seaside resort (bank, post office, town hall...) are overall less than 5 minutes away on foot. The sale price, therefore, seems prudent given the attractiveness of the town, its market and the positioning of the property. The slightly discounted price can be explained in particular by the interior condition of the building, which requires refreshing and structural consolidation work, all estimated at €150,000.

Provisional schedule

Legal arrangement

The transaction is being carried out by SAS PM3C, with a capital of €1,500,000, registered with the Paris Trade and Companies Registry under number 388 080 723, on 28/07/1992.

SAS PM3C, which carries out the transaction, is 50% owned by Mr. PERSYN in usufruct. Mr. PERSYN's daughters, Catherine CHAUAU-PERSYN and Christine PERSYN hold the remaining shares in equal parts.

The bond will be issued by SAS PM3C at an annual rate of 9% per annum for a period of 36 months. Interest is paid annually but guaranteed for a minimum period of 6 months.

To provide additional guarantees, the repayment of the bond is guaranteed by:

* A term payment guarantee issued by S2C guaranteeing the capital borrowed

* A first-rank mortgage in favor of Raizers representing the bondholders' estate

The bond contract provides for early redemption if:

* Bank refinancing

* Sale of all lots

All the documents associated with this fundraising are available in the "documentation" tab.

SWOT

Operation budget

The relative profitability of the operation, which amounts to 9% of turnover, is explained by the fact that this exit is not the operator's preferred option. In addition, interest over a prudent 36-month period has a significant impact on the balance sheet total of the operation.

Financing structure

Shareholders presentation

PM3C is a real estate player that has been in business for 28 years, operating mainly in the Hauts-de-France region, particularly in the Pas-de-Calais, as well as in the Ile-de-France region.

This family group is led by Mr. PERSYN, Chairman of PM3C, the operational holding company, and MP COMPANY, the manager's holding company.

Michel PERSYN - 73 years old, married, French:

Michel PERSYN has spent his entire career in real estate, for almost 40 years within his own companies, and in particular PM3C, which has been in business since 1992. He has developed 3,500 housing units throughout his career as well as large-scale projects, particularly in the tertiary sector (hotels, restaurants, supermarkets and balneotherapy centers).

Mr. PERSYN has taken care to integrate his entire family into his company, even though he is the one who takes on the operational tasks of the group.

Financial elements

Balance sheet PM3C

Income statement PM3C