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Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Purpose of the loan
The operation located 8, rue du Nil, consists in the purchase (in block) then resale (by cutting) of a 5-story building located in the Sentier district after some renovation work. The building is composed of two ground floor food shops, rented and occupied by a cheesemaker and a fishmonger, as well as 6 studios (from R+1 to R+3) and two duplexes (R+4/R+5). The dwellings are in good condition and require little or no work. The works planned by the operator consist of the renovation of the common areas and the lift.
Le Sentier is a central district of Paris. In the heart of the 2nd arrondissement, the building is located less than 100 meters from the Sentier metro station (Line 3), 650 meters from Chatelet-les-Halles and the Palais Royal, close to the Louvre, the Palais Garnier, Notre-Dame de Paris Cathedral, etc. It is a lively shopping district (particularly for the textile activities for which this district is famous) and a lively part of the capital. The district is notably home to the famous and popular rue Montorgueil, located less than 100 meters from the building in question.
Focus on the operation
The operation is carried by Groupe Weiss. The operator, which has a great deal of experience, has specialized in purchasing properties that are undervalued due to their low rents in order to renegotiate them to increase the value of the property.
An independent operator-investor established in Paris in 2007, the Weiss Group was founded by Julien Weiss who created and developed the investment and property development activities. The structuring, implementation and management of real estate operations and high value-added projects are the strengths of the Group's companies. Autonomous decision-making, responsiveness, the professionalism of partners, high standards and technical expertise are the cornerstones of the Group's philosophy, shared by its teams.
Detail of the asset
The prices are consistent with the type of property offered and the quality of the location. Several factors must be taken into account to explain these prices:
* The exceptional location of the building, at the foot of Rue Montorgueil, in a sought-after shopping street in the heart of the 2nd arrondissement of Paris. The building benefits from all the advantages of Paris, with numerous services, transport, shops, tourist attractions, activity center... All within walking distance, less than one kilometer.
* The Rue du Nil offers a real neighborhood life, with many craftsmen/traders, like the food shops located within the building (cheese and fish shop).
* The accommodation on offer is small, but prices tend to fall as the surface area increases.
* The flats are served by a lift, which increases the value of the properties, especially those located on the top floors.
As regards retail properties, based on the rents currently applied (€18,132 per annum excluding VAT), they have a return of 3%, which is 0.25% higher than the average for the Paris Region sector (Q4 2019), notably according to the quarterly reporting carried out by AEW CILOGER. The price posted by the operator is therefore consistent, and could even be increased in order to be in line with the market average. For information, for a given yield of 2.75%, the shops could sell for nearly €660,000, compared with the €604,300 turnover provisioned by the operator.
The operation is carried out by SNC FONCIERE DU NIL, with a capital of 1,000 euros, registered with the Paris Trade and Companies Register under number 890 018 559, on 14/10/2020.
SNC FONCIERE DU NIL, which is carrying out the Rue Du Nil transaction, is 80% owned directly by Mr. WEISS and 20% by SAS GROUPE WEISS HOLDING, which will carry the bond issue.
In order to comply with the regulatory provisions governing the bond issue, SAS GROUPE WEISS, wholly owned by Julien WEISS, will provide its First Demand Guarantee.
The bond loan will be issued by SAS GROUPE WEISS HOLDING at an annual rate of 9% per annum for a period of 30 months. The bond loan will be repaid at the end of the term, interest will be 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 :
* Personal guarantee of Mr. Julien WEISS
* First Demand Guarantee from SAS GROUPE WEISS
* First Demand Guarantee from SNC FONCIERE DU NIL
The bond contract provides for early redemption if :
* The operator markets the operation before the maturity of the loan
All the documents associated with this fundraising are available in the "documentation" tab.
IPPD (Inscription du Privilège de prêteur de deniers) Registration of the Money Lender Privilege. Possible guarantee for a property loan granted by a bank. When the bank grants a real estate credit for the purchase of an already built home, it can benefit from the IPPD. This privilege allows it to be compensated in priority (its rank is determined by the date of sale of the property) in the event of non-repayment of the property loan.
Groupe Weiss is a company operating in several real estate businesses, namely development, management and investment. An independent player created in 2007, Groupe Weiss accounts for more than 100,000 m² of real estate throughout France, particularly in the Île-de-France region in Prime sectors. It has several outstanding addresses in its portfolio, such as 151 boulevard Saint-Germain (Paris 6ème), 7 Place de Valois (Paris 1er), 13 boulevard des Italiens (Paris 2ème), 17 Place de la République (Paris 3ème), both office and residential, often with a commercial component on the ground floor. The group has specialized in high value-added transactions, in particular thanks to the expertise of its manager in the revaluation of rents for commercial premises.
Julien WEISS, 35 years old, French:
Julien WEISS, Chairman and Founder of the Weiss Group, has been carrying out operations throughout his group for 13 years.
In addition to this, Mr. Weiss has carried out more than 40 asset transactions through SCIs owned by himself, alone or with partners, which are intended to be operated over the long term and constitute the manager's assets.
Since Groupe Weiss Holding was established in December 2019, it has not yet produced any balance sheets. SNC FONCIERE DU NIL, created on 14 October 2020, has also not yet produced a balance sheet.
Focus on financial elements of a company giving its First Demand Guarantee
Balance sheet SAS Groupe Weiss
Income statement SAS Groupe Weiss
Track record Julien Weiss with his different companies