EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Purpose of the loan
The operation is being carried out by Mr. and Mrs. Abbou, property dealers and developers in the Marseille region for some 40 years. They have carried out operations representing nearly 144 units over the last 10 years.
The property is located 55 Route Enco de Botte in Allauch, 15 km from Marseille.
The operators acquire a building currently consisting of three levels (ground floor, first floor, second floor). They carry out some cleaning work and sell the building in 4 units. They are keeping the land reserve behind the house for another project.
The loan will be guaranteed by a first ranking mortgage and the personal guarantees of Mr. and Mrs. Abbou.
Zoom on the program
A quotation from the company RD 26 has been received for an amount of €100,000 including VAT.
The building is currently in good condition. The operators will simply carry out :
* A partitioning into 4 units (currently 3 separate floors)
* Bringing the electricity and plumbing up to standard
* Fitting out of the bathrooms
* Cleaning the facade
The building does not require the creation of common areas, each unit has its own entrance.
Zoom on the providers
RD 26 has a turnover of €423,000 and a profit of €15,000 in 2019.
Commercialization has not started. The operators will put the units up for sale as soon as the acquisition and refurbishment work is completed.
The selling price charged by the operators is consistent with market prices.
The prices are slightly above the market price but the units will be refurbished and all have an exterior.
The operation is located in Allauch, a town of nearly 21,000 inhabitants. The asset is located 5 km from Allauch town center and 15 km from Marseille. La Valentine shopping center is 4 km away and Marseille airport is 30 km away.
The operation is being carried out by SASU France Immo, with a capital of 1,000 euros, registered in the Marseille trade and companies register under number 897 440 467, on 22/03/2021.
In order to comply with the regulatory provisions relating to bond issues, SASU France Immo has had its assets and liabilities verified by an auditor.
The bond will be issued by SASU France Immo at an annual rate of 10% per year, for a term of 18 months. The bond will be amortized and repaid as the operators sell their properties, 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 ranking mortgage in favor of Raizers representing the bondholders' mass
* Personal guarantees from Mr. and Mrs. ABBOU
The bond contract provides for early repayment if:
* Sales of units
* Payment of management fees before the loan is repaid
The operators also retain a building land reserve of 465 m², which can be valued at approximately €230,000.
The ABBOU group consists of Mr. and Mrs. Abbou and their 3 children.
Mr. and Mrs. Abbou have been working together for over 40 years. More recently they have integrated their three children into the family group. Together they carry out property dealer and real estate development operations in the Marseilles region.
Mr. Abbou, without being a partner in the structures, is operational in all the companies.
The couple has personal assets of nearly 2.4 million euros.
Zoom on the financial elements of the company carrying the bond, SASU France Immo
The company was created in March 2021 and will close its first accounts on 31/12/2021.
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Invest in Enco de Botte par France Immo,Allauch, France