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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 Château LeBlanc operation consists of the purchase of a castle with a surface area of 845 m² and two houses located on a plot of 30,272 m² at 1 Rue du Château, 27430 Saint-Pierre-du-Vauvray in the Rouen region.
It is led by Mr DA SILVA, a expert accountant, and Mrs REBIC, an architect with 28 years of experience in the region. They wish to use their network and knowledge to carry out several operations to renovate castles into luxury hotels in Normandy.
This operation will take place in several stages:
1. Property dealer operation: Acquisition by SCI LENOIR of a castle, 30,272 m² of land and the buildings attached to these properties. The SCI resells two buildings and the associated plot of land with a surface area of 5,124 m² to a property operator, ALPINEA MAISONS. This will enable it, after resale, to cover the acquisition of the building complex and the start of the works;
2. The resale of additional plots to ALPINEA MAISONS as a land reserve;
3. The renovation of the castle into a luxury hotel by SAS DOMAINE LEBLANC.
Raizers is therefore being asked to finance only the first stage of this operation, i.e. the purchase of the entire land base before the houses are resold to ALPINEA MAISONS.
The loan is not linked to the operation of this castle, but simply to the purchase/resale of the houses with a view to their rehabilitation by another operator. The operators, who are planning a complete rehabilitation of the hotel, including the creation of troglodyte pools and saunas, wish to start the work as soon as possible, hence their need for financing of up to one million euros, including the costs linked to the acquisition and the start of the work.
The properties to be sold are under a promise to sell for €1,200,000 to ALPINEA, with the resale expected to take place during Q4 2021. ALPINEA has also positioned itself, via an offer to purchase, on additional plots of land, the sales of which are to take place at a later date.
This is the first operation of this type carried out by Mr DA SILVA and Ms REBIC. However, they both have complementary profiles, with Ms REBIC handling the technical side and Mr DA SILVA the financial and legal side.
The property will be acquired by SCI LENOIR and the loan will be carried by SAS DOMAINE LEBLANC, itself owned by the SCI holding the asset. In order to guarantee the full repayment of the loan, a first rank mortgage in favour of the bondholders is granted by SCI LENOIR.
Zoom on the program
The promise of sale, signed on 21 July 2021, provides for the sale of the two houses and the associated plot of land, for a total of 5,124 m². ALPINEA wishes to rehabilitate the two existing houses and keep the plots as a land reserve in order to create a housing development project in the years to come.
The promise of sale was signed without any suspensive condition of obtaining a building permit or obtaining a loan.
At the same time, the operators are keeping the castle in order to rehabilitate it into an upmarket hotel. The total plot acquired by Mr DA SILVA and Mrs REBIC is 30,272 m². In a second phase, they also plan to resell the plots located to the north, again to the ALPINEA company. These sales will take place after the bond loan has been repaid.
The sale price was based on the purchase offers initially signed prior to the signing of the global promise of the operation. ALPINEA buys the houses at market price, even if they require rehabilitation work. ALPINEA's objective is above all to acquire the plots of land in reserve while waiting to be able to carry out a housing development project. It should be noted that the signed promise to sell does not include any suspensive condition likely to call into question the commitment of the parties.
It should also be noted that an additional €1,700,000 is under offer from ALPINEA for additional plots. This turnover has not been taken into account in the context of this operation, as these plots are not yet the subject of promises of sale. These additional sales will enable the operators to finance the work on the castle, budgeted at €1,800,000 including tax.
The operation is being carried out by SCI LENOIR, with a capital of 1,000 euros, registered in the Paris trade and companies register under number 888 413 010, on 28/08/2020.
SCI LENOIR, which is carrying out the operation, is 50% owned by Mr DA SILVA and 50% by Ms REBIC.
The bond will be issued by SAS DOMAINE LEBLANC, with a capital of 100 euros, registered in the Paris trade and companies register under the number held 40% by Ms REBIC, 40% by Mr DA SILVA and 20% by SCI LENOIR.
In order to comply with the regulatory provisions relating to bond issues, SAS DSC AUDIT, owned by Mr DA SILVA, will provide its First Demand Guarantee.
The bond will be issued by SAS DOMAINE LEBLANC at an annual rate of 10% per year, for a term of 18 months. The bond will be amortised and reimbursed as the operator sells its products, 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 favour of Raizers representing the bondholders' mass
* Personal guarantees from Mr DA SILVA and Mrs REBIC
* A First Demand Guarantee from DSC AUDIT
All the documents associated with this fundraising are available in the "documentation" tab.
First ranking mortgage :
Loan to Value (Loan / sale price) : 83 %
Loan to cost (Loan / total cost of operation) : 91 %
Loan to acquisition (Loan / acquisition cost) : 154 %
The operation is being carried out by Ms REBIC and Mr DA SILVA.
Ms REBIC is an architect by training, and has been active for 28 years in the area. Between 1989 and 2015, she worked as an employee in several firms and design offices, before creating her own structure. She has carried out several large public projects, including several high schools, an IUFM, public sports facilities (swimming pools, gymnasiums, etc.).
Mr DA SILVA is a chartered accountant. It was in this context that they met and wanted to work together on this project. Mr DA SILVA, in addition to his activity, has several asset operations to his credit.
SAS DOMAINE LEBLANC, having been created recently and specifically in the context of this operation, has not yet produced any accounting information. In order to comply with the regulatory provisions, SAS DSC AUDIT, 55% owned by Mr DA SILVA, will provide its first demand guarantee. The financial elements of this SAS are presented below.
Balance sheet DSC AUDIT
Income statement DSC AUDIT