The project Pays du Vignoble Nantais by Baltis

Review of the project Pays du Vignoble Nantais by Baltis

Review's score :

This review is proposed by Sébastien on 03/12/2023

⏰ The project starts on 06/12/2023 11h30
💰 The estimated rate of return is 11% per year.
⏱ The duration of the project is 6m
💼 Minimum amount to invest is 100€

Analysis of the "Pays du Vignoble Nantais" Project at Baltis

The "Pays du Vignoble Nantais" project, analyzed by Sébastien HO-YU-HIN, is a simple project led by experienced leaders with 100% pre-commercialization. The mortgage coverage on the acquisition price is correct, and there is a good margin for the operator. However, caution should be exercised regarding the operator's debt.

Project Details

Project type: Real estate
Amount to be financed: 500,000 EUR
Capital repayment: In fine
Interest payment: In fine

Project Analysis

The project involves acquiring a set of buildings with a land area of 2,760 m². Renovation work will be carried out on the buildings, and the asset will be sold in 4 lots after subdivision.

✅ Strengths:

High yield of 11%
Yield is higher than the average yield (10.82%) of recent projects at Baltis
Operator's commitment: 17% (correct)
Hypothecary coverage: 86% (correct)
Location: The property is located in La Haye-Fouassière, a municipality with 4,700 inhabitants in the Loire Atlantique department. It is 15 km away from Nantes.
Location: The asset is located in a residential area with houses and has easy access to RD74. It is close to the train station, a restaurant, and 2 km away from local shops.
Budget for renovation work is 14% of the acquisition price and has been well-estimated. The project is not complex, except for asbestos removal.
Selling price at 291 euros/m² is below the average land price in the municipality (383 euros/m² for construction land).
Pre-commercialization at 100%: Conditional approval on 2 out of 3 lots. The 4th lot is owned jointly.
One lot has been sold with the condition met, representing 100% of the borrowed amount.
Optimistic scenario margin: 26%
Pessimistic scenario margin (10% decrease in selling price): 17.3%
Low percentage of delays over 6 months (9.04%) and no permanent losses at Baltis.

❗ Weaknesses and Warnings:

High Loan to Acquisition (LTA) ratio of 116%.
Low Loan to Sale (LTS) ratio of 62%.
Market downturn in the municipality with a decrease of 3.4% in real estate prices over 1 year.
Operator's high debt ratio: Debt/Net Income (2.015M/173K) = 11.64, with personal guarantees of the operator not considered.

Project Evaluation

In conclusion, the "Pays du Vignoble Nantais" project at Baltis seems to have strong potential for investors. With a high yield, good location, and pre-commercialization at 100%, it offers promising returns. However, there are some concerns regarding the operator's debt and the market downturn in the municipality. It is advisable to carefully evaluate these factors before making an investment decision.

Overall, this project presents an exciting opportunity for investors to support a real estate venture in the beautiful "Pays du Vignoble Nantais." So why not seize the chance to invest and enjoy a glass of fine wine while watching your investment grow?

Remember, if you decide to invest, you can use the referral code "BLUERSKY" during your registration to receive a bonus of 20€ after your investment. Just click on the following link to get started: Bonus Link.