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Macro Location Analysis
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Loan To value
Purpose of the loan
The operators acquire a 280 m² villa with a sea view, located 7 Boulevard Patch in Ramatuelle, in the immediate vicinity of the beach of Pampelonne and the famous Club 55. The house is in very good condition but presents some dated elements that will be renovated by the operators before resale.
The operators realize works mainly of embellishment and renovation notably on the outside of the villa before the resale.
The operation is carried out by Aymeric, Sacha and Erwan Kempf, accompanied by Philippe Brosse.
Philippe Brosse has a long career as a financier with Société Générale Asset Management, and then created Exclusive Partners about ten years ago, which offers investment solutions for institutions, banks, and asset management consultants. Aymeric Kempf has been an entrepreneur since the end of the 1980s, and has developed several companies in real estate and asset management. He also carries out real estate operations as a property dealer and developer.
Aymeric Kempf and Philippe Brosse know each other and have been partners for many years, notably through Beauvau Capital, an asset management company that manages 180 million euros. They also own renowned hotels including the Castel Clara in Belle-Ile en mer.
Raizers is involved in financing the land, additional costs and works. The loan is secured by a first ranking mortgage, a notarised personal guarantee from the three operators and the First Demand Guarantee from the SEEK holding company.
NB: The first year's interest will be locked in an escrow account. The interest due for the first 6 months will be paid directly to the investors after the funds are released.
This villa built at the end of the 1990's offers a Provencal style architecture with a panoramic sea view and is located at 700 m walking distance from the famous beach of Pampelonne and the Club 55.
With a surface of 280 m² on a park of 1500 m², it includes 5 beautiful bedrooms and 4 bathrooms as well as another bedroom in annex with sanitary facilities.
The outdoor area includes a heated infinity pool with integrated Jacuzzi and poolhouse, numerous terraces with panoramic views, a bar area, a covered gym, a covered parking lot for two vehicles and four additional parking spaces.
The villa is in very good general condition, but has some dated features and equipment, especially on the exterior.
The work will start at the end of September for a duration of about 2 months and a half. Indeed, no work can be done in July and August (tourist zone).
The planned work only concerns the modernization of the whole property both inside and outside. The majority of the budget is devoted to the exterior:
* The gravel parking area will be paved;
* The carports and the habitable annex will be upgraded;
* The landscaping will be completely redesigned;
* The pool area will be completely renovated;
* Creation of a pool house;
* Renovation of the terraces;
* The facades will be cleaned and repainted;
* Change of the woodwork and railings.
Inside, the villa will be slightly renovated: finishes and decoration, in order to better meet the expectations of the current clientele.
The general standing of the property will be raised compared to the existing one with quality services.
Example of a similar operation performed by the operator
Zoom on the providers
A contract for project management and monitoring of the program has been signed with the company Akemis, represented by Aymeric Kempf. He will be in charge of all the organization, the assembly and the follow-up of the Villa Cocoa operation.
Commercialisation will begin in September, after the tourist season. It will be carried out internally and according to market opportunities.
An estimate of the value of the asset was made by JLL (John Lang Lasalle), a company specializing in commercial real estate consulting and real estate appraisal, on March 17, 2021:
* Market value as it is, free of occupation: €5,000,000 excluding taxes
* Market value after works (according to the project communicated), free of occupation: 7 500 000 € excluding taxes
* Minimum price of the property to ensure the profitability of the project
The operator's selling price is higher than the market price, but it has been set according to the estimate made by JLL.
The average market price is well below, as it concerns all types of properties and environments in the commune of Ramatuelle.
The average price of the properties for sale in the vicinity has been realized in relation to assets of the same type, but the comparison between these properties remains complicated, as they are exceptional properties.
The asset benefits from a privileged location and a sea view (quite rare if close to the beach) with few offers available in this area. The properties are therefore trading at prices that are not in line with the market.
Properties for sale nearby
The project is ideally located in the town of Ramatuelle, 700 meters from the beach of Pampelonne and the famous "Club 55" and 3 km from downtown Saint-Tropez. The bay of Pampelonne is an essential part of the bay of Saint-Tropez and the location is very popular. The Fréjus train station is 40 km away and the Hyères-Toulon airport is 55 km away (20 km for the international airport of the Gulf of Saint-Tropez).
The operation is being carried out by SASU Luxury Avenue, with a capital of 1,000 euros, registered in the Paris Trade and Companies Register under number 881 590 106, on 13/02/2020.
SAS Luxury Avenue, which is carrying out the Villa Cocoa operation, is wholly owned by its parent company, SAS SEEK.
In order to comply with the regulatory provisions relating to bond issues, SAS SEEK will provide its first demand guarantee to SAS Luxury Avenue.
The bond will be issued by SAS Luxury Avenue at an annual rate of 10,5% per year for a term of 18 months. The bond will be reimbursed at the time of the sale of the villa, the interest is paid annually, but guaranteed for a minimum period of 6 months.
The first year's interest will be locked in an escrow account. The interest due for the first 6 months will be paid directly after the release of the funds to the operator.
In order to provide additional guarantees, the repayment of the bond loan is secured by:
* A 1st ranking mortgage
* Notarised personal guarantees from Sacha Kempf, Erwan Kempf and Philippe Brosse
* First demand guarantee of SAS SEEK
The bond contract provides for an early repayment if:
* Sale of the villa
* Loan to Value (Loan / Turnover) : 67 %
* Loan to Cost (Loan / Cost of Ownership) : 87 %
* Loan to Acquisition (Loan / Acquisition cost) : 132 %
Philippe Brosse graduated from Science Po Paris and started his career at Société Générale in the general inspection department, specializing in market activities, before moving on to become director of structured products and derivatives. In 1995, he joined Société Générale Asset Management (SGAM) as deputy managing director, then became managing director of SGAM Alternative Investments and developed its activities (structured management, hedge funds, private equity, real estate) in France and internationally. He collected 64 billion euros in 4 years.
Since 2010, he has been developing his own activities with his company Exclusive Partners, which offers investment solutions for institutional investors, banks, asset managers, etc. Since 2015, he has also been a partner in Beauvau Capital (a real estate management company) and Finexkap (an accredited management company).
Sacha and Erwan Kempf are currently studying in business school. They are accompanied in this operation by Philippe Brosse, but also by their father, Aymeric Kempf, as project manager of the operation.
Aymeric Kempf is a company manager since the end of the 1980s: he starts by the creation of a company of works and construction which he will sell in 1992 to develop a group of breweries in the big East (with a consolidated turnover of 13 million euros). He sold the establishments in 2007 in order to devote himself fully to real estate.
He developed the Franco-Luxembourg group Akemis Group, dedicated to asset management (especially commercial real estate), but also to the development of commercial surfaces for large brands and to real estate operations for luxury brands. In 2015, he and Philippe Brosse bought the asset management company that became Beauvau Capital, which now manages €180 million in assets. From 2019, he acts as an advisor to the SEEK group and structures it with the integration of his children and Philippe Brosse as a partner. He also created a hotel business that owns two hotels in Belle-Île-en-Mer (two 4-star, including a relais-château).
Zoom on the financial elements of the company carrying the bond, SASU LUXURY AVENUE
Balance sheet of SASU LUXURY AVENUE
Income statement of SASU LUXURY AVENUE
Zoom on the financial elements of the company holding the shares and giving its First Demand Guarantee, SAS SEEK
Balance sheet of SAS SEEK
Income statement of SAS SEEK
Zoom on the financial elements of the shareholder company, SASU ISTVAN
The company was created in November 2020 and will close its first accounts on 31/12/2021.