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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 project is located at 21 Chemin d’Halage in Grenoble, in a residential area on the banks of the Isère and in the immediate vicinity of the city centre.
It is carried by SAS Acte Campus, which is held via holding companies by three partners: Mr Roth, who is responsible for monitoring the site, and Mr Belhassen and Mr Fères, who manage the administrative side. Each of them has significant experience in the real estate business, having delivered large-scale projects.
The project consists of the development of a student residence of 54 furnished units operated by a manager, with commercial premises at the foot of the building and basement car parks.
The student residence units are already commercialized through two networks: Artemis Consult and Square Habitat. To date, 60% of the units are under reservation contract and 10% under option, an offer has also been made by a nursery for the commercial premises.
The land was already acquired at the end of May 2021 via a bank loan and Raizers is being asked to refinance the equity invested by the operators in the operation: €400,000 needed for the acquisition and €100,000 in technical study invoices.
Zoom on the student residence
The pre-commercialized units are under a reservation contract.
Level of commercialization of the student residence :
* 60% of sales and units under reservation contracts
* 10% of turnover and units under option
Each unit is sold furnished and with a firm 9-year commercial lease with the manager Cardinal Campus, who is responsible for renting each unit.
Cardinal Campus is one of the leading French players in the management of student residences (at the end of 2019, it managed nearly 3,400 student units in 37 residences) and is the leader in Lyon.
The flats in this residence are investment products aimed at individuals wishing to invest in non-professional furnished rental (LMNP). Indeed, in the context of an LMNP or LMP investment, the recovery and deductibility of VAT are possible. Purchasers can thus recover the VAT on the sale price and deduct the VAT from the rental payments.
Commercialization is outsourced to Artemis Consult and Square Habitat (a subsidiary of Crédit Agricole).
Level of commercialization of the commercial premises:
* An offer at the price has been received from Maison Bleue, a private daycare company
The price per square meter excluding furniture is high compared to the prices observed in the sector. This can be explained by :
* The new nature of the units offered.
* Each unit is sold with a 9-year commercial lease, so rents are guaranteed during this period.
* Only small surfaces are involved.
The operation is located in Grenoble, the second-largest city in the Auvergne-Rhône-Alpes region, called the capital of the Alps. It is a city at the foot of the mountains between the Drac and Isère rivers, which makes it the ideal place for winter sports.
It is a student city, with 65,000 students of 180 different nationalities: 610 courses are offered from bachelors to doctorate level, as well as a unique collaboration with research organizations, international laboratories and companies. The capital of the Alps is thus among the 5 most innovative cities in the world.
The residence is in the heart of the Ile Verte district, a residential area along the Isère river, sought after for its proximity to the hypercentre (about twenty minutes by foot) and to the universities (about twenty minutes by tram). The district benefits from the presence of a multitude of small shops and the tramway, which is just 4 minutes from the residence.
The transaction is being carried out by SAS Acte Campus, with a capital of 2,000 euros, registered in the Grenoble Trade and Companies Register under number 892 644 535, on 06/01/2021.
In order to comply with the regulatory provisions relating to bond issues, SAS PR Immo, owned by Mr Roth, will provide its First Demand Guarantee.
The bond will be issued by SAS Acte Campus at an annual rate of 9% per annum, for a term of 18 months. Interest is paid annually but guaranteed for a minimum period of 6 months.
In order to provide additional security, the repayment of the bond is guaranteed by :
* First demand guarantees from SAS PR Immo and SAS CETIM
* Personal guarantee from Mr. Fères
The bond contract provides for early repayment if:
* Delivery of the operation
The President of SAS ACTE CAMPUS is Mr Belhassen.
Philippe Roth, 46 years old, French:
Philippe Roth was Managing Director of SA SAFILAF (a major developer in the Alps with 300 to 580 homes delivered during 6 years) and he delivered with this company 3 student residences in Grenoble including a block sale to BOWFONDS REIM of 234 homes and shops (Le Nexus).
Since 2018, he is Managing Director of Financière PETRUS which is involved in more than 10 managed residential projects. At the same time, he created his own structure, SAS PR IMMO, which is exclusively involved in managed student residences.
Philippe Belhassen, 53, French:
Philippe Belhassen is a business lawyer by training who has converted to the real estate business and more particularly to the activities of property trader and developer; he has just delivered (at the end of 2020) the rehabilitation and extension of the former Chamber of Commerce and Industry of Grenoble, of which he was the main architect and partner.
Marcel Fères, 65, French:
Marcel Fères is a chartered accountant by training (he sold his company in 2001, a legal entity that has since become SR Conseils). In the early 2000s, he created Financière PETRUS, of which he was Chairman until 2017 (he is still a director) and Finance & Stratégie, which is his holding company. He is currently completing a new housing program in association with Mr Roth, and as Chairman of Financière Petrus he has been involved in about ten projects per year.
Zoom on the financial elements of the company giving its First Demand Guarantee, PR Immo
Zoom on the financial elements of the holding company of Mr. Fères giving his personal guarantee
Zoom on the financial elements of the company giving its First Demand Guarantee, Cetim