Update from the originator:
The originator is sharing a change on the operation. Mr. Vasquez, presented as co-shareholder and director of the company, left the shareholding and is no longer a director. Consequently, the personal guarantee of the latter is no longer necessary and the entire personal guarantee is transferred to the sole shareholder Mr. Paris.
Nevertheless, Mr. Vasquez will assist Mr. Paris at the operational level as he was initially indicated but as a service provider.
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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
It is possible to subscribe to this operation in euros at the CHF/EUR exchange rate of 0.9. For the 4,000,000 bonds issued, the amount of one bond is, therefore, €0.90, i.e. a minimum amount at the time of subscription of €900 corresponding to 1,000 bonds.
In the case of a subscription in euros, the repayment of the capital, as well as the payment of interest, will be made in euros at the CHF/EUR exchange rate of 0.9.
Investors will not be charged any exchange rate fees for both the subscription and the redemption.
Information regarding the LTV
This calculation is pessimistic because it is based on the value of the land as the purchase value. External estimates that are more favorable give an exit value of 20M€.
Also, the LTV is calculated on the value of the remaining lots, hence this amount.
The operation is located Chemin des Lentillières - 1023 Crissier, 5 minutes away from the highway exit in an industrial zone, ten minutes by car from the center of Lausanne.
It is the development of a state-of-the-art logistics warehouse park consisting of 68 workshops and several collaborative spaces. These types of boxes are perfectly modular and can be adapted to the needs of different types of users (craftsmen, logistic companies, contractors...). The operator thus wishes to create a real community based on the synergy of the different activities present.
The operators are Mr. Paris, ensuring the financial structuring and the sourcing of the land, and Mr. Vazquez who manages the site follow-up. Mr. Paris, through his group Ikone, has already carried out several operations as a merchant of luxury chalet properties in Megève, and Mr. Vazquez created his tiling company which employed nearly 40 people before its resale.
They are now developing the Storedege project together and have an ongoing operation in Bussigny, also near Lausanne.
The observation that led them to create this concept is the fact that in Switzerland there is a real demand for this type of logistics asset, which is prized by investors. The existing offer is obsolete and poorly adapted to the needs of users.
Focus on the program
Each unit has a private parking spot and collaborative spaces are also created (meeting, concierge, snacking...).
On the 68 units:
* 32 units are under reservation contract (with advance payments), i.e. 47% of the units for a turnover of CHF 10,240,000.
- The work will be financed in part through the sale of these units, for which 50% of the sale price is paid upon signature and the remaining 50% once the operation is delivered.
* 36 lots will be rented for an annual rent of 1 055 808 CHF.
- Numerous expressions of interest from potential future tenants have been received by the marketing agency. The leases will be signed once the land is acquired.
The operator wishes to lease a large part of the lots in order to keep the majority in the decisions that will be taken, as a co-ownership will have to be created on this project.
This operation is a commercial project and therefore not subject to the LFAIE*. This can allow not Swiss investors to invest without being limited in the amount.
The proposed boxes target several types of users:
* Craftsmen looking for a workshop
* Companies looking for a storage unit
* Entrepreneurs seeking premises to start their business (office + sales outlet)
The objective is to create a community based on the synergy of the activities present in the park with different and complementary specialties.
The exit of the investors depends on bank refinancing once the boxes will have been built and rented. UBS made a reiterated written offer in February 2021 for 50% of the yield value based on a 6% capitalization rate. This represents a bank refinancing of CHF 9 316 800.
The sale is handled by SWISS ASSURANCES Adjin CRNIC and the rentals are handled by GEROFINANCE DUNAND for the complete management of the boxes and tenants.
* Federal law on the acquisition of a real estate by persons abroad: this Swiss federal law limits the acquisition of a real estate by persons abroad.
Crissier is a Swiss commune in the Vaud canton located 12 minutes by car from the center of Lausanne and 37 minutes by public transportation. It is also about 30 minutes from Geneva International Airport. The logistics warehouse is ideally located, 400 meters from the freeway exit, ideal for this type of goods.
Excerpts from the market study (from the 2018/2019 CBRE study available in the documentation area):
"Logistics platforms and storage buildings are currently very much in demand among investors. User demand for these types of products is on the rise, fuelled by the strong growth in online sales of around 10% per year in recent years.
The dynamics of e-commerce have been accompanied by strong pressure on investments in "alternative" real estates products such as logistics and warehouses, while the portfolios of Swiss investors are mainly made up of residential and office properties.
The total area of logistics and storage space available throughout Switzerland amounts to approximately 390,000 m² (August 2018), which corresponds to a vacancy rate of only 1.6% of the existing total area. The market is therefore particularly tense with little availability.
Users of this type of premises also have few options on the rental market, as the buildings are mainly designed according to the user's own needs.
It is therefore likely that the demand for quality premises in the logistics and warehouse market will remain strong in Switzerland. A large part of the existing stock is obsolete and no longer meets today's requirements (median year of construction of available space: 1990). And only 32% of the offers concern buildings that were constructed after 2000. A modernization of the existing stock, therefore, remains unavoidable. »
The Storedge concept, therefore, seems to address the concerns extracted from the CBRE study by offering:
* Products in line with investors' needs
* A new box format that adapts to the user's needs
The operation is carried out by Cologny Geneve Real Estate V, with a capital of 100,000 Swiss francs, registered in the Trade and Companies Register of the Canton of Geneva under the number CHE-386.866.466, on 11/09/2013.
This company will also carry the bond issue.
The bond loan will be issued by SA Cologny Geneve Real Estate V 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 security, the repayment of the bond loan is guaranteed by:
* A 2nd rank mortgage in favor of Raizers representing the mass of bondholders.
* Personal guarantees before a notary by Mr. Vazquez and Mr. Paris
* Ariane Capital, the senior lender, will be jointly and severally liable to activate its guarantees if Raizers were to activate its own, i.e., if the operator defaults on the 2nd rank, Ariane will be able to activate its 1st rank guarantees.
* Raizers, through Raizers Transactions also benefits from a non-exclusive sale mandate which will be activated 1 month before the maturity of the bond issue if no bank agreement is found for the refinancing. This means that if no bank refinancing is reached within this period, Raizers Transactions will be able to sell the remaining lots with a floor price of CHF 280,000, thus covering the repayment of the first- and second-rank investors.
The bond contract provides for early repayment if:
* Bank refinancing
* Sale of all remaining lots
All the documents associated with this fundraising are available in the "documentation" tab.
Two scenarios are presented below:
* The initial scenario with the bank refinancing following the renting of the unsold boxes.
* The pessimistic scenario, if the lease fails, thus not allowing for bank refinancing, and the exit depends on the sale of the remaining lots (hypothesis of a price equal to the lots already sold).
*In the initial scenario, after refinancing the operation, the operator has the ownership of 36 boxes with a value ranging from 11.5 M (sale price confirmed by the 32 lots already pre-sold to date) to 18.6 M (value calculated on the gross rental value of 1.12 M). - 1.12 million with a yield of 6%, yield retained by the bank). We have used the average value, i.e. 15 M.
In the pessimistic scenario, the minimum resale price of the lots is CHF 263,000, i.e. 18% less than the initial price of CHF 320,000 with a zero margin.
*50% of the sale price of the units under contract will be paid at the reiteration of the deed.
Ariane Capital is a Swiss family office offering several types of products: private debt, funds, structured products, etc... The company has recently made a name for itself by accompanying the development of the hotel group MOB. Ariane Capital has already accompanied Mr. Paris on several of his transactions and was involved in the financing of the Bussigny deal, the first joint transaction between Mr. Paris and Mr. Vazquez.
*through its holding Masate Real Estate SA Geneve
In this operation, Mr. Paris oversees land sourcing, financial structuring and development, and Mr. Vasquez manages negotiations with the companies, worksite monitoring and conformity of finishes. Together they develop the Storedege concept.
Mr. Vazquez was previously a supplier to Mr. Paris. The first Storedge project is the one in Bussigny and is currently under construction.
Philippe Paris, 61 years old, French:
Mr. Paris has been working in real estate since 2008. He has carried out several real estate operations in Paris, Megève, Courchevel and St Tropez. Following an accident with his right arm in 2008, he completely stopped his initial profession as a doctor and developed his promotion activity in the luxury sector by creating the company Ikone in 2014, IK Project and then IKARE.
The projects realized in Megève by Mr. Paris are visible here.
Alejandro Vazquez Pardo, 34 years old, Spanish:
Mr. Vazquez works as an entrepreneur; he founded his company Vazquez carrelage in 2008 which employed nearly 40 employees with a turnover of about CHF 10 million in 2019 and 2020. He sold it in 2020. In 2015, he also created his masonry/renovation company with a turnover of CHF 2 million in 2019 and 2020. In particular, he realized the Olympic Museum in Lausanne, the Halles district in Morges, etc...
Balance sheet Cologny Geneve Real Estate V
Income statement Cologny Geneve Real Estate V