The project As des As by Raizers

Review of the project As des As by Raizers

Review's score :

This review is proposed by Sébastien on 13/12/2023

⏰ The project starts on 15/12/2023 14h00
⏱ The duration of the project is
💼 Minimum amount to invest is 1000€

🤖 Review's summary

Analysis of the As des As project at Raizers, analyzed by Sébastien HO-YU-HIN

The project is planned for December 15, 2023 at 2:00 PM. Overall opinion: Good fiduciary guarantee. Difficult to evaluate the senior coliving and micro creche market.

Project Details

Type of project: Purchase - renovation/construction - resale
Amount to be financed: 3,500,000 EUR
Capital repayment: In fine, interest: yearly

This real estate merchant project aims to rehabilitate a retirement home into a senior and student coliving space, as well as a micro creche, in the town of Pessac, France. A house located on the property will be sold as is.

Strengths and Weaknesses

Strength: Very high return.
Strength: The return is higher than the average return (10.76%) of recent projects at Raizers.
Weakness: Loan to Acquisition (LTA) is 100%, which is high.
Strength: Loan to Sale (LTS) is 53%, which is low.
Strength: Operator commitment is 14%, which is satisfactory.
Guarantee Type: Fiduciary, GAPD
Weakness: GAPD: CP < Borrowed amount and DN/CP Ratio = 21.28
Strength: Mortgage coverage is 100%, which is high.
Strength: The property is located in Pessac, a town with 61,000 inhabitants in the Gironde department, southeast of Bordeaux.
Strength: The property is located in a residential area with houses and small buildings. It is near the train station, local shops, a hypermarket, a park, and a hospital.
Strength: Acquisition price at 2,087€/m2. For comparison, the average price is 5,025€/m2 for existing properties in the town.
Strength: Selling price of the house at 4,152€/m2, below the average price of 5,025€/m2.
Strength: Architect responsible for renovation and construction.
Strength: Experienced operator in large real estate merchant projects in the region.
Strength: Positive track record with 5 crowdfunded projects fully repaid.
Strength: Pre-commercialization of the coliving asset representing 88% of the revenue. Letter of intent with suspensive conditions.
Strength: Optimistic scenario margin: 18%.
Weakness: Pessimistic scenario margin (-10% revenue and +10% construction costs) is 7.7%.
Weakness: Difficult to evaluate the selling price of the senior coliving space, but seems consistent with prices in the town with a 7% return.
Weakness: Significant construction budget at 1.1M€, representing 31% of the acquisition price.
Weakness: 3 ongoing crowdfunding projects.
Weakness: Real estate market decline in the town: -8.9% in the past year.
Weakness: No data on market study conducted for senior coliving and micro creche.
Warning: Operator's financial health: Company registration in progress. Indebted parent company. DN/CP Ratio = 21.28.
Strength: Low delays of more than 6 months at Raizers: 7.26%.
Strength: 0% permanent losses at Raizers.

Project Opinion

Overall, the As des As project at Raizers seems promising. It offers a high return and has a track record of successful crowdfunded projects. The location of the property in Pessac is advantageous, as it is in a residential area and close to amenities. The acquisition and selling prices are competitive compared to the local market. However, there are some weaknesses and warnings to consider, such as the high loan to acquisition ratio, the difficult evaluation of the senior coliving space selling price, and the lack of market study data. It is important to carefully assess these factors before making an investment decision.

If you decide to invest in this project, don't forget to use my referral code "MBS" when signing up for Raizers. You can earn up to 100€ in bonuses after your first and second investments. Happy investing!