This is a real estate development operation for a complex of 33 social housing units divided into 3 R+1 buildings and 47 outdoor parking spaces.
The project is located in Plan d'Orgon in the South of France, between Avignon and Aix-en-Provence and is being carried out by Hervé Gevaudan, former co-founding partner of Uniti Habitat, a French group listed on the stock exchange and financed several times by Raizers, which has significant experience in the development of social housing.
Work will begin in March 2021 and delivery is scheduled for June 2022.
The project is being fully sold to the social landlord 13 Habitat, the leading social housing office in the Bouches-du-Rhône region.
Raizers is involved in financing the acquisition of the land, which will take place at the same time as the signing of the deed of sale in the Future State of Completion with 13 Habitat, thus securing the transaction.
The loan will be backed by a First Demand Guarantee from the Prelude holding company as well as the personal guarantee of Hervé Gevaudan.
Focus on the program
The operation includes three buildings (11 dwellings in each building) for social housing on the ground floor and 47 parking spaces (including 3 accessible to People with Reduced Mobility).
The structural work will be carried out by the STMC company. The tenders for the other lots are in progress.
The prime contractor for the operation is Axxion Ingénierie, a local company recommended to the operator.
The operation is marketed in full to the social landlord 13 Habitat.
13 Habitat is the leading social housing office in the Provence-Alpes-Côte d'Azur region. They manage nearly 33,500 housing units for an annual budget of around €405 million. With more than 750 employees, 450 of whom work directly in the field, they operate in Marseille and throughout the Bouches-du-Rhône department.
The signing of the deed of sale in the Future State of Completion will take place at the same time as the signing of the deed of acquisition of the land, which will trigger the payment of the first 5% call for funds.
Schedule of VEFA calls for funds:
Plan d'Orgon is a commune in the Bouches-du-Rhône, bordering Cavaillon (the city of melons) with 3,750 inhabitants. This commune is located 10 minutes from Cavaillon (TER station) and 30 minutes from Avignon (TGV station).
The development is located in the immediate vicinity (5 minutes on foot) of the village centre and all its amenities: bakery, tobacconist's, grocery shop, doctor, town hall, restaurants/bars...
The sale price of the transaction is consistent with the market prices prevailing in the commune. The slightly lower prices are mainly explained by the nature of the housing: social character and block purchase by a social landlord.
The transaction is being carried out by SAS Les Jardins de Provence, with a capital of 100 euros, registered with the Montpellier Trade and Companies Register under number 878 390 194, on 30/10/2019.
SAS Les Jardins de Provence, which carries out the transaction, is 70% owned by SASU Prelude and 30% by Travis Baiche.
In order to comply with the regulations governing bond issues, SAS Les jardins de Provence has had an asset/liability review carried out by a statutory auditor.
The bond loan will be issued by SAS Les Jardins de Provence at an annual rate of 10% per annum for a period of 24 months. The bond loan will be repaid in fine, with interest paid annually but guaranteed for a minimum period of 6 months. The contract also provides the possibility for the operator to reimburse in 4 tranches of €150,000.
In order to provide additional guarantees, the repayment of the bond loan is guaranteed by:
* Personal guarantee by Hervé Gevaudan
* First Demand Guarantee from SASU Prelude
The bond contract provides for early redemption if:
* Delivery of the transaction
* Disengagement of the guarantor (GFA)
All the documents associated with this fundraising are available in the "documentation" tab.
* The operator benefits from a VAT credit of €228,856 on this transaction. Indeed, the sale of social housing is subject to a reduced rate whereas purchases are subject to a standard rate of 20%. The operator will thus be able to recover its VAT credit.
Hervé GEVAUDAN, 52 years old, has always been involved in the real estate business: selling developments from 1999 and setting up tax exemption operations under the Malraux law until 2012, particularly in the protected areas of Béziers, Agde and Montpellier. From 2012, he founded UNITI SA with Stéphane Oria, of which he will be Chairman until its IPO. The company specialises in the construction of social and assisted housing and has built several thousand units. At the same time, he created a subsidiary in Canada, of which he took over as Chairman and sold his shareholdings in the parent company in January 2018. Mr. Gevaudan and Mr. Oria had two different strategic visions for the future of the company and he decided to withdraw.
In 2018, he created Prelude SASU in order to resume its social housing promotion activities in France.
Since 2009, Travis BAICHE, 34, has been working with Hervé Gévaudan, first directly, then in the UNITI SA group, which he will also leave in 2018. As Technical Operations Manager, he has successfully led the technical part of all the UNITI SA group's development operations. Within the operation, he is in charge of the assembly and site supervision.
Focus on the financial elements of the company carrying the bond
Balance sheet SAS Les Jardins de Provence
Income statement SAS Les Jardins de Provence