The project PARIS 17e Ternes by Tantiem

Review of the project PARIS 17e Ternes by Tantiem

Review's score :

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

⏰ The project starts on 06/12/2023 12h30
💰 The estimated rate of return is 7.7% per year.
⏱ The duration of the project is ∞
💼 Minimum amount to invest is 100€

Analysis of the PARIS 17e Ternes project by Tantiem, analyzed by Sébastien HO-YU-HIN

The project is scheduled to take place on 2023-12-06 12:30:00. Overall review: Commercial asset with a good location in Paris. Decent return for this type of asset in Paris.

Lack of information about the financial stability of the tenant.

👷‍ Project Type: Rental investment

💶 463,400 EUR to be financed

⏰ Distribution: capital: In fine. coupons: Quarterly

🏪 1 commercial space of 31m2 occupied by Archibald Bakery in the 17th arrondissement of Paris.

💼 Minimum investment: 100 euros.

⏱ Duration: ∞

🛖 Property Type: Commercial real estate.

✅ -> STRENGTHS ❗️-> WEAKNESSES ⚠️ -> Warnings

❗️Return of 5.4% and target IRR (profitability) of 7.7% -> Lower than on other fractional real estate platforms but decent for commercial real estate in Paris.

✅ The return is higher than the average return (7.15%) of the latest projects at Tantiem.

Type of Guarantee: First lien mortgage

✅ Mortgage coverage: 84% -> Correct

❗️Start: First rent payment on February 5, 2024 -> 2 months without being paid

✅ Asset rented by Etvoila company (Archibald Bakery)

✅ Purchase price at 390k, which is 12,580 euros/m2 lower than the price estimation by capitalization: 26,400*100/5.7 = 463k

✅ Condition: Fully renovated property and all maintenance works are the tenant's responsibility.

✅ Location: Located in the 17th arrondissement in the northwest of Paris. Mixed residential and commercial area. Ground floor of a Haussmannian building. 1 km from the Arc de Triomphe.

✅ Tenant Quality: Growing company with a trendy concept = Quality organic bread. 5 locations in Paris and the 92 area.

✅ 3/6/9 lease running until June 2031 -> Good visibility for 7 years during which the tenant has committed to paying rent.

✅ Higher standard of living in this district compared to the national average.

❗️No information on the financial stability of the tenant.

❗️No photos of the interior of the commercial space.

❗️Long-term investment of 8 years or more.

💎 BONUS

Referral Code: MBS

Boosted Rate: +2.3%

➡️ The link is here: https://app.tantiem.com/users/sign_up?bonus_code=MBS

My Opinion on the Project

This project seems like a promising investment opportunity. Despite a few weaknesses and warnings, such as the lack of information on the tenant's financial stability and the two months without rent payment at the beginning, there are several strengths that make this investment attractive.

The location in Paris' 17th arrondissement is highly desirable, being a mixed residential and commercial area with a higher standard of living. Additionally, the property is situated on the ground floor of a Haussmannian building, adding to its appeal.

The rental income has a decent return of 5.4%, which may be lower compared to other fractional real estate platforms, but is still competitive for a commercial property in Paris. The coverage of the mortgage is also at a satisfactory level of 84%.

Furthermore, the tenant, Etvoila (Archibald Bakery), is a growing company with a trendy concept of quality organic bread. They have multiple locations in Paris and the 92 area, which indicates their potential for success.

Overall, I believe this investment offers a good opportunity for those looking to invest in commercial real estate in Paris. While there are some areas of concern, the strengths of the project outweigh them, making it a worthwhile venture. So why not seize this chance to be a part of Paris' vibrant business scene? Join me in investing in the PARIS 17e Ternes project!