EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Purpose of the loan
This operation will make it possible to finance the acquisition of a property complex to be resold in its current state to entrepreneurs wishing to operate it as a hotel-restaurant. The building benefits from a central location in Marseille, a few steps from the Vieux-Port between Cours Pierre Puget and Rue Grignan.
The property is located at the end of a courtyard, currently used as a dwelling but defined as commercial premises in the co-ownership regulations and the notarial deeds.
Process of the operation
The operation is taking place in two phases.
In the first phase, the operator acquires the building - promise to purchase signed on 19/11/2020 - for a price of €1,850,000. It must sign the final deed by 28 May 2021 at the latest. He obtained financing from the Caisse d'Epargne on 18/03/2021 in the amount of 750,000€.
In a second phase, a promise to sell was signed on 05/02/2021 with a consort of 4 partners for €2,735,000.
This promise to sell includes conditions precedent, in particular obtaining a loan, planning permission and co-ownership approval, which will be lifted by January 2022 at the latest.
The consortium wishes to upgrade the backyard of the building. It will invest around €1.6 million in the works and change the use of the premises from commercial to a mixed hotel and restaurant activity.
This consort is made up of 4 professionals:
-The two project leaders have just sold their company, allowing them to invest in this new operation.
-An experienced investor in the hotel and restaurant business, having invested in a starred restaurant in Cassis and a 5* hotel in Aix-en-Provence. He would have announced his willingness to invest 600,000 euros of his own funds in this project.
-The architect of the project has carried out the renovation of several hotels in the south of France.
In a letter dated 4 December 2020, the bank partner of this consort expressed its intention to take a favorable position, but will not issue a final agreement before the signing of a formal compromise and before the validation of the works phase.
If the conditions precedent is not lifted, the units will be sold as it is, potentially allowing the buyers to operate them as non-professional furnished tenants.
The average price of the operation is within the current market prices, as the units are sold as is without major renovation work.
Two certificates of value from different marketers (VALEUR IMMO – IAG IMMOBILIER) also validate a sales price range above €3,000,000 for this sector after works.
The acquisition carried out at €2,628/m2 vs. €3,773/m2 observed on average in the same sector confirms the operator's acquisition at a price on the low end of the market.
The transaction is carried out by SAS Bricala, with a capital of 1,000 euros, registered in the Marseille trade and companies register under number 898 381 264, on 19/04/2021.
The bond will be issued by SAS BRICALA at an annual rate of 10% per annum, for a period of 18 months. The bond will be amortized and repaid upon resale by the operator, 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 secured by :
* A 2nd rank mortgage in favor of Raizers representing the bondholders' mass
* Personal guarantee of the two partners
The bond contract provides for early repayment if:
* Resale of the property
All the documents associated with this fundraising are available in the "documentation" tab.
Presentation of the operator
After graduating from IAE Aix-en-Provence in 2011, Mr. Benjamin CLAIR became a wealth management advisor at Union Financière de France before becoming a self-employed wealth management advisor in 2013. Since 2019, he has decided to carry out real estate transactions himself and is gradually ceasing his advisory activity.
Real estate track record: two real estate transactions to date on the division of a flat into two units in his own name and has monitored 4 real estate investments on behalf of his clients.
He declares a net wealth of more than €800,000 spread over :
* several financial investments
* a real estate transaction in progress
* holding of company shares
His wife, a pharmacist since 2016, is a non-active partner. She provides an additional guarantee for this transaction.
Balance sheet and income statement of the company Clair Kauffmann SARL (Mr. Clair's consulting company)
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Invest in Cours Pierre Puget by Bricala,Marseille, France