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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 hotel is located at 6, rue Nathanya à Nice, close to Nice Riquier train station in the Saint Roch district. It is a popular and growing district with many services and shops that attracts students due to its proximity to Saint-Jean d'Angély university.
The operation consists of financing the development of a four-story building comprising ten plots, including a commercial space, based on an existing house. The building permit has been obtained, and cleared of all claims, by SCCV Nikolina, which will carry out the operation. This SCCV is 50% owned by JAC Transactions, which advanced the equity capital for the acquisition of the land on 18 September 2020.
Sale in the block is preferred, with the profitability of around 5%, but a second option is being considered, the resale by cutting. In this case, the lots will be distributed via local agencies and the operator offers to manage the search for a potential tenant, with a lease that will take effect as soon as the work is completed.
The commercial premises are not taken into account in the price/m² of the operation.
The market price is in line with the transaction price, although slightly higher, which is explained by the new character of the properties on offer.
The transaction is being carried out by SCCV Nikolina, with a capital of 1,000 euros, registered with the Nice Trade and Companies Registry under number 848 244 323, on 12/02/2019.
SCCV Nikolina, which carries the Saint Roch operation, is 50% owned by its parent company, SAS JAC Transactions, which will carry the bond issue.
The bond loan will be issued by SAS JAC Transactions at an annual rate of 10% per year for a period of 24 months. The bond issue may be amortized and repaid by the operator as sales are made, with interest paid annually but guaranteed for a minimum period of 6 months.
In order to provide additional guarantees, the repayment of the bond is guaranteed by:
* A first-rank mortgage in favor of Raizers, representing the mass of bondholders.
* Personal guarantees from Andreas Simonetti and Jean-Marc Simonetti
* First Demand Guarantee from SCCV Nikolina
Repayment of the bond loan will be made according to the progress of marketing in the following manner:
When the bond and its interest are repaid in full, the first mortgage will no longer be registered.
Each installment repaid will have to produce a minimum of 6 months of interest.
Example of calculation for the repayment of a tranche:
The issue date of the bond is January 15, 2021.
Lot 1 was sold 6 months later, so JAC Transactions will pay the investor making an investment of €10,000:
* 10% of the amount lent, i.e. €1,000
* 6 months interest at an annual rate of 10%, i.e. €50 of interest (€1,000 x 10% annual/12 months x 6 months)
The bond contract provides for early redemption if:
* Sale of all the lots
All the documents associated with this fundraising are available in the "documentation" tab.
The operator advanced the equity capital in order to acquire the property and to finance the study costs.
The majority shareholder of the SCCV and holder of the bond issue, JAC Transactions:
* President: Jean-Marc Simonetti, 69-year-old, French
Jean-Marc Simonetti is President of JAC Transactions, which he founded in 2013. Previously, he worked as a sales executive for more than 10 years and was in charge of brand development in France and the United States.
* Chief executive officer: Andreas Simonetti, 25-year-old, French
Andreas is CEO of JAC Transactions. He started in the real estate sector as a commercial agent for more than two years before joining the family business. His assets are estimated at €4 million.
* Shareholder: Mas Transactions
Mas Transactions est la société de marchand de biens de François Mascarell dont la gestion est confiée à sa fille, qui a apporté 300 000€ à la structure à l’été 2017. François a plusieurs expériences en immobilier et en tant que chef d’entreprise. Il apporte une expertise technique au sein de la société et assure avec rigueur toute la partie administrative et juridique.
Minority shareholders of the SCCV:
* Branimir Vujovic, project manager
* Ivona Ivanovic, Mr. Vujovic wife, who has no operational part
* Kéléké Ba, marketer
Track record JAC Transactions
Achieved operations JAC Transactions
Balance sheet JAC Transactions
Income statement JAC Transactions