Detailed Description

Operation

The operation takes place in the commune of Les Gets, in Haute-Savoie, 40 kilometers from Geneva. The area is very popular with wealthy foreign clients (mainly Swiss and English) who wish to acquire a property close to the ski slopes and Lake Geneva. Les Gets, a tourist town renowned for winter sports has several ski lifts leading directly to the large Portes du Soleil ski area.

The Les Chamois project consists of the renovation of a building on the ground floor, a former holiday camp, into 10 luxury lots, as well as 10 individual and closed underground parking spaces. The typologies proposed range from T2 to T4 in order to best meet the demand of the sector.

The operation is led by ALPHA PROMOTION, a group led by operators who have been operating in the building sector for more than 10 years. They have several companies in the construction sector, including an electricity company and a general building company. Part of the work is carried out directly through their companies, which allows them to have total control over costs and deadlines, and thus develop their activities across the entire real estate value chain.

Detail of units

Market price

The prices offered by the operator are in line with the average prices in the sector, slightly below the average price observed. This can be explained by the disparity of prices in the commune of Les Gets, which is very dependent on the quality of the goods (many exceptional goods are present in the sector) and the proximity to the town center, where the project is 2 kilometers away (but only 700 meters from the first ski lift). Prices are also low out of caution, as the operator prefers to sell its operation quickly.

Provisional schedule

The provisional schedule foresees the end of the works during Q4 2021, allowing the operator to deliver the first goods and to advance on the marketing during the winter period, the most favorable period for the commercial sale of the properties located at the foot of the ski slopes. Repayment is scheduled for 18 months in order to give the operator sufficient time to complete its marketing, even if the operator is confident that the operation will be repaid before this deadline.

Legal arrangement

The transaction is being carried out by ALPHA PROMOTION, 50% owned by DM IMMO and 50% by ACTE IMMO.

In order to comply with the regulatory provisions governing bond loans, SARL DM IMMO and ACTE IMMO, wholly owned by the managers, will provide their First Demand Guarantees.

The bond loan will be issued by SAS ALPHA PROMOTION at an annual rate of 10% per year, for a period of 18 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:

* The first-ranking mortgage in favor of Raizers representing the mass of bondholders

* Personal guarantee from the directors

* First Demand Guarantees of ACTE IMMO and DM IMMO companies, personal holding companies of the managers.

The bond contract provides for early redemption if:

* The operator markets part or all the units before the forecast date

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

SWOT

Operation budget

Financing structure

Operators presentation

Mr. Nicolas MISITI, 46 years old, French, has been running a company in the building industry since 2009, a company which has its own clientele and whose activity does not entirely result from the operations carried out by ALPHA PROMOTION.

Mr. Murat DUTAR, 39 years old, French, has been a company manager in the building industry since 2005.

The two directors have recently joined forces, notably on the DUMI transaction, which is their first joint operation. Each operator has previously carried out operations on its own or through its personal holding companies. Following the success of their first association, they have decided to join forces through ALPHA PROMOTION (created in 2018) and want to develop their real estate business.

Operators track record:

Financial elements

Balance sheet Alpha Promotion

Income statement Alpha Promotion

Balance sheet DM Immo (Mr. Dutar personal holding)

Income statement DM Immo (Mr. Dutar personal holding)

Balance sheet Acte Immo (Mr. Misiti personal holding)

Income statement Acte Immo (Mr. Misiti personal holding)