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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 is located at 24, Boulevard de l'Industrie in Blois in the heart of a commercial zone, about ten minutes from the center of this city located on the banks of the Loire and with a rich historical and cultural heritage.
This involves the purchase and subsequent resale of a shopping center with five fully leased cells.
The operation is being carried out by SCI Val de France Centre, which is owned by Holfidis Asset Management, of which Mr. Naidji is Chairman. Mr. Naidji has extensive experience in the retail sector and launched his retail property company in 2012.
The operator is acquiring the shopping center with a currently empty cell, for which it has found a tenant: Supeco, the discount chain of the giant Carrefour. At this stage, a draft lease has been drawn up, it is not yet signed, but is confirmed by a letter of intent from Supeco and will be regularized in the coming weeks.
Mr. Naidji is carrying out some light works by opening the facades of the shopping center and the prior declaration relating to these modifications is cleared of any appeal.
Once the lease is in place, the shopping center will be sold to an investment company with a capitalization rate of 7%. A protocol has been put in place which is valid as a promise to sell which will be directly reiterated by a notarial act. A deposit of 120 000 € has been paid.
The operator solicits Raizers for the acquisition of the property.
Zoom on the program
The cell n°5 was previously occupied by Netto (Intermarché Group) waiting for an extension of a nearby Intermarché.
Zoom on the tenant of the unit n°5
A draft lease has been drawn up with Supeco, Carrefour's discount chain. The rent has been fixed at 145,000 € excl. tax/no load for a period of 9 years (classic 3/6/9 lease) from the effective date of the lease. The lease is expected to take effect on August 2, 2021, so that the retailer can carry out its development work and open to the public at the end of September 2021.
Zoom on the buyer
A memorandum of understanding prior to a promise to sell has been signed between SCI Val de France Centre and the investment company Grand Sud Ouest Real Estate Management. This company specializes in real estate investment and asset management and is involved in various types of assets: shops, warehouses, offices, hotels, mixed-use complexes and agricultural land.
The sale price has been set at €5,000,000 exclusive of tax, with the condition that the vacant cell be rented for a rent of €145,000 exclusive of tax. The reiteration of this sale must be done at the latest on 30/11/2021. A deposit of 120 000 € has been paid.
Real estate market price
The operation was resold with a yield of 7%, a rate in line with the market in these medium-sized cities where the annual yield is between 7 and 9%. This rate is coherent given the quality of the tenants and the duration of the remaining leases.
The average price/sqm of commercial premises in Blois is 1,446 €/sqm for premises currently for sale.
References of similar properties for sale:
Rental and sale of a commercial space of approximately 375 m². Possibility of a parking space in supplement. Close to the train station and five minutes walk from the city center of Blois and the castle, close to a bus stop.
Type : Commercial premise
Area : 375 m²
Price : 637 500 €
Price in €/m² : 1 700 €/m²
On the quays of the Loire, Blois Vienne district, shopping street - Quay Villebois-Mareuil, a free commercial premise (former restaurant - total surface 60 m²) on the first floor composed of a small kitchen, a restaurant room with bar, a veranda on the quays, toilet and washbasin. Cellar (20 m²).
Type : Commercial premise
Area : 107 m²
Price : 127 520 €
Price in €/m² : 1 192 €/m²
1 446 €/m²
The operation is thus in the average of the prices observed on the sector with a price of 1 392 €/m².
Blois is the capital city of the Loir-et-Cher and the most populated city in the department. It is a city on the banks of the Loire River with a charming historical city center. It is known for its important cultural heritage with its castle or the Saint Louis cathedral. It is easily accessible from Paris by train (1h40) or by the A10 highway (2h).
The shopping center is located about ten minutes by car from downtown Blois in the heart of a commercial and industrial area (Leclerc, Leroy Merlin...).
The transaction is being carried out by Holfidis Asset Management, a SAS with a capital of 325,000 euros, registered in the Boulogne-sur-Mer Trade and Companies Register under number 539 922 328, on 18/07/2012.
SCI Val de France Centre, which is carrying the "Blois" operation, is 30% owned by its parent company, SAS Holfidis Asset Management, which will carry the bond issue.
The bond will be issued by SAS Holfidis Asset Management at an annual rate of 10% per year for a period of 12 months. The interest is paid annually, but guaranteed for a minimum period of 5 months.
In order to provide additional guarantees, the repayment of the bond issue is secured by:
* A 1st ranking mortgage in favour of Raizers representing the bondholders' mass
* Personal guarantee of Mr. Naidji
* First demand guarantee of SCI Val de France Centre
The bond contract provides for an early repayment if:
* Sale of the real estate complex
* Loan To Value (Loan / Turnover) : 80%
* Loan To Cost (Loan / Cost of Ownership) : 85%
* Loan To Acquisition (Loan/ Acquisition cost): 113%
Boudjema Naidji, 63, French:
Mr Naidji started his career in 1986 with the Promodes Group, a French retail group that merged with Carrefour in 1999. He worked as Regional Director and then Director of Strategy and Development, developing and managing a network of more than 50 franchised and integrated super and hypermarkets and conducting external growth operations.
In 2012 he created a real estate company, Holfidis Asset Management and launched a European real estate fund, Europroperty 2 Lu.