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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 operation is located at 156, Avenue de Bernis in Vallauris, on the heights of Cannes, in a district known for its prestigious villas.
This is the financing of a property deal of a villa acquired in January 2021. The operator Blue Building Company wishes to carry out work in order to completely refurbish the property before its resale.
Blue Building Company is a company owned by the same shareholders as JAC Transactions, of which Raizers has already financed several operations, three of which have been repaid.
Blue Building Company has joined forces with SARL Prestige & Classic Design within the framework of a Société en Participation (SEP)* in order to carry out this operation. The SARL Prestige & Classic Design owned by Patrice Montuoro has already carried out many operations of this type. The SEP contract provides that Blue Building Company will finance the equity and the margin will be shared 50/50. Within this framework, Blue Building Company has provided nearly €830,000 of equity capital requested by the bank in the context of the acquisition. Raizers is therefore requested to refinance part of this equity.
* A Société en Participation (SEP) is a partnership agreement where the partners have decided not to register the company, it, therefore, has no legal character. The partners are solely liable to third parties and no minimum contribution is required. However, the partners agree to share profits and contribute to losses as in any partnership.
Zoom on the villa
The villa of 307 m² has a swimming pool and adjoining land of 1 800 m². John Taylor carried out an estimate of the villa on 09/02/2021 for an amount between €5,700,000 and €6,500,000. The selling price is 5 526 000 € i.e. 18 000 €/m².
The villa will be sold once the work is completed. The property will be marketed through prestigious agencies on the French Riviera, leaders in the luxury villa sector, with a large client base and active international requests: John Taylor, Michael Zingraf and Knight Frank.
NB: Some living surfaces are missing, not allowing us to calculate the price/m².
Example of similar assets for sale (average price 16 000€/m²)
Price in €/m²
Engel & Völkers Côte d'Azur
6 600 000 €
22 000 €/m²
5 500 000 €
14 474 €/m²
5 700 000 €
11 400 €/m²
The operation is carried out by Blue Building Company, with a capital of 50,000 euros, registered in the Nice Trade and Companies Register under number 879 214 252, on 06/11/2019.
The SARL Prestige & Classic Design which carries the operation "Villa Sublime" is engaged with the Blue Building Company within the framework of a SEP with the SAS Blue Building Company which will carry the bond loan.
To comply with the regulations governing the bond issue, SAS JAC Transactions, majority-owned by Andreas Simonetti, will provide its First Demand Guarantee.
The bond loan will be issued by SAS Blue Building Company at an annual rate of 10% per year for a period of 24 months. Interest is paid annually but guaranteed for a minimum period of 6 months.
To provide additional guarantees, the repayment of the bond is guaranteed by:
* Personal guarantees from Andreas Simonetti and Jean-Marc Simonetti
* First Demand Guarantee from JAC Transactions
The bond contract provides for early redemption if:
* Sale of the villa
All the documents associated with this fundraising are available in the "documentation" tab.
* Blue Building Company has provided nearly €830,000 of equity capital requested by the bank in connection with the acquisition. The Raizers loan will be used to refinance part of this equity.
A Société en Participation (SEP) has no legal character, the shareholders are committed to third parties and no minimum contribution is required. However, the partners undertake to share profits and contribute to losses as in any partnership.
SARL Prestige & Classic Design
The SARL Prestige & Classic Design is 100% owned by SARL Diamond which is the property merchant company of Mr. Montuoro who is a specialist of luxury villas, he has already realized more than 90 operations in the Cannes/SuperCannes sector.
Blue Building Company
Blue Building's shareholders are the key people of the company JAC Transactions.
President: Andreas Simonetti, 25 years old, French
Andreas started in the real estate sector as a commercial agent for more than two years before joining the family business, JAC Transactions with his father, where he now holds the position of Managing Director. His asset value is estimated at €4 million.
Previously a real estate agent and agency manager for 7 years in the "carré d'or" in Nice, he is now the commercial director of JAC Transactions. He will have a marketing role in the operation.
He is an architect and has been involved in the design and execution of all JAC Transactions operations for the past 4 years. He will have the role of the architect in the operation by participating in particular in the realization of the 3D visuals.
François has several experiences in real estate and as a company manager. He brings technical expertise to JAC Transactions and rigorously handles all the administrative and legal aspects. He has no operational role in the transaction but acts as an investor.
As the Blue Building Company has only recently been created, no financial statement could be transmitted as the accounts will be closed on 31/12/2020 and are not yet available. The financial elements presented are therefore those of JAC Transactions under First Demand Guarantees.
Balance sheet JAC Transactions
Income statement JAC Transactions