Descripton

Operation

The operation is located in Saint-Paul and concerns the construction of five individual villas. The operation is 80% sold (4 houses sold out of 5). The acquisition of the land was completed on 23 December 2020 and the VEFA (VEFA - Ventes En l'Etat Futur d'achèvement) was signed at the end of December. Raizers is involved in refinancing the acquisition of the land and the costs related to the acquisition. Work will begin on 15 January and delivery of the transaction is scheduled to take place in one year's time, in December 2021.

The transaction is being carried out on a co-promotion basis by Mr. Marianne, project manager (SAS M2CB), and Mr. Patrick Hoarau, property developer (A2i promotion). Both operators have over 20 years' experience in project management and property development.

The transaction is guaranteed by Mr. Marianne's personal guarantee and four First Demand Guarantees from the following companies in the group:

* SARL Eden Blue (Mr. Hoarau's holding company)

* SAS M2CB (Mr. Marianne's project management company)

* SARL SM PCI Group

* SCCV Les Villas du Golf

Zoom on the program

Detail of the units

Two of the units are acquired for tax exemption purposes and the other two units are acquired as a principal residence.

Works

Work will begin in mid-January and is expected to last one year. M2CB, Mr. Marianne's company, is in charge of project management. The works will be carried out by various craftsmen from Reunion Island, at a cost of €1,219 excluding VAT/sq.m., excluding roads, networks, distribution and outdoor fittings.

Commercialization

Marketing is carried out by SUNFIMMO at a cost of 6% including tax, it is the specialist in tax-exempt sales on Reunion Island.

Level of commercialization: 

* 80% of the units (4 out of 5 villas)

* 80% of turnover

Location

The operation is located in Saint-Paul in Saint-Gilles Les Hauts, between the sought-after districts of L'Eperon and Villèle. All amenities are nearby.

Saint-Denis-de-la-Réunion airport is 45 minutes away by car and the famous Boucan Canot beach is only 14 minutes away.

Market price

The prices charged by the operator are higher than market prices. This difference is mainly explained by the fact that they are new constructions. In addition, there are price disparities between the different districts of the town of Saint-Paul.

The marketing of 4 villas out of the 5 available also attests to the consistency of the selling prices of the villas.

Provisional schedule

Legal arrangement

The transaction is being carried out by SCCV Les Villas du Golf, with a share capital of €500, registered with the Saint-Denis-de-la-Réunion Trade and Companies Registry under number 888 490 133, on 01/09/2020.

The SCCV Les Villas du Golf, which carries out the transaction, is 50% owned by SARL SM PCI Group and 50% by SARL Eden Blue. SARL SM PCI Group owns 100% of SAS SM Financière, which will carry the bond issue.

In order to comply with the regulatory provisions relating to the bond issue, SAS M2CB is providing its First Demand Guarantee A to SAS SM Financière.

The bond will be issued by SAS SM Financière at an annual rate of 10% per year for a period of 18 months. The bond will be repaid in fine and interest will be paid annually but guaranteed for a minimum period of 6 months. In the event of surplus cash, the operator may proceed with early repayment in installments before the maturity of the loan.

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

* Mr. Marianne's personal guarantee

* First Demand Guarantees from SARL Eden Blue, SARL SM PCI Group, SCCV Les villas du golf and SAS M2CB.

The bond contract provides for early redemption if:

* Delivery of the transaction

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

SWOT

Operation budget

Financing structure

Shareholders' presentation

The operation is led by Mr. Marianne, project manager by profession (via its M2CB structure) and Mr. Hoarau, property developer (via its A2i structure). Both men have solid professional experience in the construction industry and wish to join forces for this operation. They have already worked together on several occasions, with Mr. Marianne acting as prime contractor for Mr. Hoarau's operations.

Stéphane MARIANNE dit GERARD, 39 years old, comes from a family involved in construction. This is his 7th operation as a developer since 2008. In parallel to his activity as a project manager, he carries out his real estate programs, whether it is a question of collective housing, villas or commercial real estate. He has strong experience in project management which gives him the technical skills required for the realization of this program. It has delivered more than 150 plots of land through 20 programs (flats, detached and semi-detached villas, architect's villas, commercial premises).

Patrick HOARAU began his construction and development activity via the company SGC SARL in 1992. In 1996 he created the A2i structure, specialized in property development, as well as the company H2O Piscine. Eden Blue was created in 2005 as a holding company bringing together all the real estate and water treatment industry activities. On 30/06/2020, the company's shareholders' equity amounted to €7,466,000.

Financial elements

Focus on the financial elements of SAS SM Financière and SCCV Les villas du golf

The SCCV Les Villas du Golf, carrying the transaction, and the SAS SM Financière, issuing the bond, was created in September 2020 and therefore do not have closed accounts. As an exception, they will close their first accounts on 31/12/2021.

Focus on financial elements of SARL EDEN BLUE (First Demand Guarantee)

Balance sheet SARL EDEN BLUE

Income statement SARL EDEN BLUE

Focus on financial elements of SAS M2CB (First Demand Guarantee)

Balance sheet SAS M2CB

Income statement SAS M2CB