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Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Purpose of the loan
The operation is located at 140 Boulevard de Strasbourg - 94130 Nogent-Sur Marne and consists in purchasing shares in an SCI owning a gas station on the ground floor of a building.
The project is to rehabilitate this property into a Basic Fit gym. The building permit has been obtained and cleaned. An amendment permit with minor changes was obtained on 09/12/2020 and is currently being cleaned.
The company carrying the transaction will be SCI 140 Boulevard de Strasbourg, which will be wholly owned by SAS CG Nogent, part of the CG Investment group, which specializes in real estate.
Raizers is involved in the acquisition of the company's shares and the launch of the works. The balance is being financed by the Caixa bank.
A lease in a future state of completion with Basic Fit, a sports hall sign listed on Euronext, was signed in September 2019 for a firm term of 9 years from the date of completion of the works, set for 31/12/2021 at the latest.
The operation is 100% pre-sold, a promise was signed on 01/12/2020 for resale with a 5.3% return for the buyer.
Average price /m² in the region
The resale price of the transaction is in the high end of the price range for commercial/office premises in the Val-de-Marne. However, this higher price is explained by the new character of the property and the fact that it is sold already rented with a guaranteed return over a firm 9-year period.
Focus on the lease
The lease is a lease in the future state of completion (BEFA), it was signed on 18/09/2019 with Basic Fit. This means that the lease will only take effect once the work has been completed. The estimated completion date is 31/12/2021 and the lease term is 9 years. The expected rent is €280,000 excl. tax/HC/year from the third year with a rent-free period in the first year and a rent of €250,000 excl. tax/HC/year in the second year.
The tenant, Basic Fit, is a fitness company founded in 2004 in the Netherlands. The group uses a low-cost strategy to win over its customers with beginners' subscriptions starting at €19.99/month.
The company is listed on Euronext Amsterdam and valued at €868 million in May 2020 (ISIN code: NL0011872650). It should be noted that the company raised €130 million in June 2020 despite the difficult context linked to the health crisis.
2019 key figures:
* 784 gyms
* 2,2 million members
* 5,110 employees
* 515M€ turnover (+28% vs. 2018)
* 152,8M€ EBIT (+26% vs. 2018)
Rents average price excl VAT and charge/m² in the region
The rent operated is in line with commercial rents in the sector.
Focus on the buyer
The purchaser is an SCI whose manager is an executive of a French multinational group. The promise was signed on 01/12/2020 with the following conditions precedent to be lifted :
* Obtaining the amending permit, which is clean
* Obtaining financing of €5,400,000 over 20 years at a maximum rate of 1.5%.
The transaction is being carried out by SCI 140 Boulevard de Strasbourg, with a capital of €1,000, registered with the Nogent-Sur-Marne Trade and Companies Registry under number 483 564 761, on 03/08/2005.
The SCI carrying the transaction is wholly owned by its parent company, SAS CG Nogent, which will carry the bond issue.
The bond will be issued by SAS CG Nogent at an annual rate of 10% per annum for a period of 24 months. 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 issue is guaranteed by :
* 1st rank mortgage
* Personal guarantee of François Gaucher
* First Demand Guarantees from CG Investment France and Shakti Invest
The bond contract provides for early redemption if :
* Sale of the property
All the documents associated with this fundraising are available in the "documentation" tab.
The bond loan represents 37% of the value of the post-construction property (Loan To Value - LTV).
*Christophe Clamageran and François Gaucher hold CG Investment Luxembourg through their personal holding companies under Luxembourg law, which they each own 100%.
CG Investment France is a company whose purpose is to invest in operating companies, mainly French, in real estate, to manage and develop these investments and to make value add investments in all types of assets.
CG Operating is the subsidiary dedicated to providing services on behalf of third parties based on their own account experience in order to develop the value of the property entrusted to them.
Assets under management: 260 active leases (485 lots / 86 Sites)
Christophe Clamageran, 57 years old:
Graduated from ESLSCA school, Christophe Clamageran began his career in real estate with the Auguste Thouard group and then with DTZ (real estate consulting). He then spent 11 years in the BNP Paribas group as Chairman of Meunier Promotion then Chief Operating Officer of BNP Paribas Immobilier before becoming Chairman of Hammerson France (real estate). He then joined Gecina (real estate investment specialist) as Managing Director. In 2012, he took part in the creation of Seefar (KKR property asset management) with Éric Duval.
François Gaucher, 56 years old:
After successful experiences in real estate financing brokerage and portfolio management, François GAUCHER co-founded a real estate investment structure (GDG Participations) in 1994, which he sold in 2006. In 2007, he created Pegase Partners dedicated to the acquisition, management and marketing of large portfolios of real estate assets.
Focus on financial elements of CG Nogent (ex Oh Perché) carrying the operation
Balance sheet CG Nogent
Income statement CG Nogent
Zoom on financial elements of CG Investment France, giving its GAPD
Balance sheet CG Investment France
Income statement CG Investment France
Zoom on financial elements of Shakti Invest, giving its GAPD
Balance sheet Shakti Invest
Income statement Shakti Invest