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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 Clos de Pomerol is an operation to rehabilitate an existing building in 12 plots of dressed stone from Libourne. 55% of the project has already been pre-commercialized, in line with the request of the European Bank of Crédit Mutuel, which is financing the project.
The project is located in Libourne, a town of 25,000 inhabitants located 1 km north of the city center and 40 km east of Bordeaux.
The pre-marketing of the goods started in Q2 2020. To date, these are simply letters of intent to purchase, considered as pre-commercialization. The sales will be formalized at the end of the transaction, as it is a property dealer transaction.
The transaction is being carried out by MD IMMO, a company formed from an association between Mr. MECHIN (COGEPAR), who works in the building industry, notably as a project manager and has carried out several similar transactions, and Mr. DANG (SC ANNMAR), an ophthalmologist by profession who has carried out several transactions in his own name as a patrimonial asset as well as a property merchant transaction.
Zoom on the program
To date, the operation has 6 pre-commercialized lots, for a total of €1,122,700, i.e. 55% of the lots and 53% of the turnover.
Marketing began in Q2 2020, based solely on the network of operators. The operators have stopped marketing since Q3 2020 in order to concentrate on the operational part. Commercialisation will resume following the acquisition of the land through a network of local agencies, notably Square Habitat in Libourne.
Project and plan
The project is located 2 km north of the center of Libourne, in an area that is still suburban, but very close to the city's main shopping center. The project is located between vineyards, housing and shops.
Despite its "distance" from the town center, there are many shops nearby, starting with the main shopping center, but also several local shops (tobacco, bakery, wine cellars, restaurants) without having to go into the town center.
The project is located close to several vineyards, a signature of the region. There are 4 of them within a radius of 250 meters, including several castles.
The town center has all the necessary amenities, numerous services, restaurants, shops, a market... All within walking distance.
Libourne is very well served by main roads, as it has direct access to the A89 (Périgueux Bordeaux axis), close to the A10 (Bordeaux-Paris) and allows you to reach Bordeaux in 40 minutes.
The station is less than 2 km from the project. The latter notably offers an RER (suburban train) that connects to Bordeaux in 30 minutes. The project thus benefits from the employment area that is the Bordeaux metropolis.
All school classes are represented in Libourne, right up to the Lycée, located in the center of Libourne.
Assets sold in the sector:
The prices charged by the operator are above the market price. Many of the properties in the area are outdated and are sold as-is, to be renovated by the buyers. The supply of new housing is almost non-existent (only one new development is currently being marketed), while demand is strong in view of the Girondin market and the proximity to Bordeaux, which is saturated with housing.
The current commercial rhythm is good and reassuring for this project since the operation has 55% of the lots pre-sold after one-quarter of marketing.
The operation is carried out by MD IMMO, with a capital of 2,000 euros, registered in the Bordeaux Trade and Companies Register under the number 890 861 867, on 19/11/2020.
SAS MD IMMO, which carries the Le Clos Pomerol transaction, is 50% owned by SC ANNMAR and 50% by SAS COGEPAR. The bond issue is carried directly by SAS MD IMMO, itself chaired by SC ANNMAR.
In order to comply with the regulatory provisions governing the bond issue, SAS COGEPAR and SC ANNMAR, wholly-owned respectively by Mr. MECHIN and Mr. DANG, will provide guarantees on first demand.
The bond issue will be issued by SAS MD IMMO at an annual rate of 10% per annum for a period of 18 months. The bond issue may be redeemed early, with interest paid annually, but guaranteed for a minimum period of 6 months.
To provide additional guarantees, the repayment of the bond loan is guaranteed by:
* Personal guarantee from the directors
* First Demand Guarantees from SC ANNMAR and SAS COGEPAR
The bond contract provides for early redemption if:
* The operator markets all of its lots before the scheduled maturity date
All the documents associated with this fundraising are available in the "documentation" tab.
* Loan amount: 400,000€ for the purchase - 750,000€ for the work support loan
* Interest: 3% /year for acquisition; 2% /year for work
* Commitment fee / Application fee: 3,500€ for the acquisition; 1% / year for the commitment fee
* Guarantees: 1st-rank IPPD; 2nd-rank mortgage; joint and several guarantees of SC ANNMAR; joint and several guarantees of SAS COGEPAR
* Conditions: Commitment not to demolish the asset; the contribution of €400,000; decision not to oppose the RFP; 55% pre-marketing, i.e. €1,122,700 including tax; release of the building; liability insurance; certificate of completion of the works.
Operational Shareholder 1: DANG NGOC, Phuong (Thierry), 51 years old, French:
Synthesis of the manager's resumé:
An ophthalmologic surgeon by profession, he has carried out several real estate operations, notably through real estate investment trusts. His activities have led him to develop his real estate activities.
Real estate track-record:
In addition to its real estate projects, the operator has carried out an operation to rehabilitate a building to divide it into 4 dwellings in Dax.
Operational shareholder 2: MECHIN, Franck, 53 years old, French:
Synthesis of the manager's resumé:
* Since June 2018: COGEPAR: General contractor; Holding company of the manager
* Since 2018 : AMPI: Project management - OPC ;
* 2014 - 2018 : SAS BEC ENVIRONNEMENT: Renovation of residential buildings - Associated technical manager;
* 2011 - 2014: Maisons MCA: Works Supervisor in the construction of individual houses
* 1995 - 2011: S2M France + ICD: Managing Partner: Automotive trade and related services - €6M
Real estate track-record (through AMPI) :
* In progress: Rehabilitation of an R+1 tertiary building with the creation of 19 housing units.
* 2019: Rehabilitation of a former summer camp into 14 accommodation units
* 2019: Renovation of a shop in R+1
* 2018: Fitting-out of a medical practice (ERP) in a new building delivered gross by the developer; "High-end" services
* 2018: Extension of a dwelling house; New construction of an outbuilding of 110 m² and 2 closed garages
Zoom on financial elements of SAS COGEPAR
Balance sheet SAS COGEPAR
Income statement SAS COGEPAR
Zoom on financial elements of SC ANNMAR
Balance sheet SC ANNMAR
Income statement SC ANNMAR