Announcement from the originator:
The originator contacting you regarding the bond loan to which you have subscribed on the project carried out by MRJF in Saumur, the issue date of which was to start on 06/29/2021.
Despite the success of the collection, the operator contacted the originator at the start of the week to inform us of recent discrepancies that exist between him and the land sellers. The latter announced to him that they would not appear for the signing of the authentic instrument initially scheduled for June 30.
Mr. FONTAN, therefore, enters into a procedure with the sellers in order to allow either the forced sale of the property or the recovery of the work that Mr. FONTAN was able to carry out within the premises before the acquisition.
After having taken up contact with his legal advisers, the latter indicate to Mr. FONTAN that all the procedures can take a certain time and that at this stage we do not know the outcome.
By mutual agreement with Mr. FONTAN the originator decided to put a premature end to the loan before the disbursement of funds and the date of issue.
The amount of your investment has been therefore credited again to your account.
Note that several files are being collected so that you can possibly reinvest these funds as soon as possible.
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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
The operation involves the financing of the acquisition of a mixed-use warehouse/office building with a view to its resale at 154 Boulevard Jean Moulin, in Saumur.
The operator, Mathieu Fontan, has had the use of the property since the end of 2019 (following the signature of an occupation agreement attached to the promise of sale) and has already carried out the work necessary to divide the property into several cells. He has placed two tenants in the premises: the technical services of the town of Saumur as well as a CrossFit gym, the first CrossFit box affiliated to Saumur. In addition, Mr. Fontan occupies part of the warehouse with one of his companies for 56% of the building.
The project, the sale of which has not yet begun, is intended to be sold "en bloc" to an investor. The operator is relying on its extensive network in the region for this purpose.
The renovation and division of the cells have also been carried out by Mr. FONTAN to date. The tenants have been installed and the rents have already been paid since November 2019.
The operator, who has a degree in economics and management (DESS Monnaie Banque Finance Assurance), began his career with majors in the finance and consulting sector, notably with Merrill Lynch and Deloitte, before creating his own company in 2002, which recently became TRANSITION EXPERT, a consulting, auditing and training company.
In parallel to this activity, he has carried out a few real estate development operations and property dealerships by opportunity.
Zoom on the program
Left: warehouse rented to the city of Saumur - Right: warehouse rented to the CrossFit Gym
Real estate market price
Overall, the prices proposed by the operator are below market prices. This can be explained by the type of property proposed here, namely a warehouse, whereas the market study takes into account all industrial and tertiary buildings, some of which offer special features (loading bay in particular). The study also covers the wider Maine-et-Loire market, as the Saumur market does not have enough references to provide a meaningful basis for comparison.
In addition, the operator preferred to remain cautious about its selling price in order to ensure a rapid resale of the operation.
The project is located in Saumur, in an industrial and commercial zone ideally situated, close to numerous shops, restaurants and services. The project is 2.5 km south-east of Saumur town centre. Within 1 km there are several housing estates, restaurants, shops, the Post Office, the Police Station, the Employment Office...
The department of Maine-et-Loire (49) is experiencing a strong increase in its business real estate (read article). This increase, which was slowed down by the COVID, should resume its dynamic at the end of the health crisis. In addition, this crisis has created an imbalance between supply and demand in the sector in favour of supply. Today, Saumur has no stock of residential property, and the town attracts many city dwellers wishing to leave the big cities to acquire more indoor and outdoor space. This dynamism also reflects in the tertiary sector.
The operation is carried out by MRJF, with a capital of 100 euros, registered in the Angers trade and companies register under number 880 183 017, on 30/12/2019.
SAS MRJF, which is carrying out the transaction, is 100% owned directly by Mr. Fontan.
In order to comply with the regulatory provisions relating to bond issues, SAS TRANSITION EXPERT, which is wholly owned by Mr. Fontan, will provide its First Demand Guarantee.
The bond will be issued by SAS MRJF at an annual rate of 10% per year, for a period of 18 months. The bond will be repaid at maturity, 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 1st rank mortgage in favor of Raizers representing the bondholders' mass
* A personal guarantee from Mr. Fontan
* A First Demand Guarantee from SAS TRANSITION EXPERT
* Loan to Value (loan/turnover): 70 %
* Loan to Cost (loan/ Cost of Ownership): 74 %
* Loan to Acquisition (loan/ Acquisition cost): 123 %
MRJF is wholly owned by Mr. Fontan. This company is intended to carry Mr. Fontan's projects, directly or indirectly.
Mr. Fontan is mainly involved in auditing, consulting and business management. At the same time, he has carried out a few real estate operations, notably in association with members of his network in the Saumur region. He recently decided to develop this real estate branch following the development of the Saumur area, which has seen its market boosted by the health crisis, both in the residential and tertiary sectors.
Balance sheet SASU Transition Expert (First Demand Guarantee)
Income statement SASU Transition Expert (First Demand Guarantee)
Balance sheet MRJF
Income statement MRJF