The project Dieppe Horizon by Tokimo

Review of the project Dieppe Horizon by Tokimo

Review's score :

This review is proposed by Sébastien on 29/12/2023

⏰ The project starts on 04/01/2024 20h00
💰 The estimated rate of return is 11% per year.
⏱ The duration of the project is 9m
💼 Minimum amount to invest is 100€

🤖 Review's summary

The Dieppe Horizon project at Tokimo is a refinancing project scheduled to take place on January 4, 2024 at 8:00 PM. The aim of the project is to refinance a portion of the renovation and equity capital of the operator who has acquired and renovated a property comprising of 3 lots in Neuville-Lès-Dieppe. These 3 lots will then be sold. Let's take a look at the strengths and weaknesses of this project: ✅ The projected yield is 11%, which is quite high. ❗ However, the yield is slightly lower than the average yield (11.31%) of the latest projects at Tokimo. ❗ The Loan to Acquisition (LTA) ratio is high at 250%. ✅ The Loan to Sale (LTS) ratio is low at 45%. ✅ The operator has a high commitment of 29%. ❗ The mortgage coverage is quite low at 39%. ✅ The property is located in Neuville-Lès-Dieppe, a town with a population of 10,500 on the Normandy coast. ✅ The location is great as it is near the port of Dieppe, a train station, a park, and a college. It is also just a 10-minute drive from the beach, and each lot has a sea view. ✅ The acquisition price is 670 euros/m2, which is significantly lower than the average price of 1632 euros/m2 for buying an apartment in the area. However, it's important to note that the properties are not habitable at this stage of renovation. ✅ The selling price is 3692 euros/m2, which is above the upper range for existing apartments at 2448 euros/m2, but consistent with the price of a new apartment with a sea view. ✅ The real estate market in the area is on the rise, with a 4.5% increase in the past year according to meilleursagents.com. ✅ The project operator seems to have experience in property flipping with renovation. ✅ The optimistic scenario has a margin of 35%, while the pessimistic scenario (with 10% higher renovation costs and 10% lower discount) has a margin of 22%. ✅ The Loan to Cost (LTC) ratio is correct at 70%. However, there are some weaknesses to consider: ❗ The property is not habitable in its current state and requires significant renovation, representing 209% of the acquisition price. ❗ There is no pre-marketing or pre-sales information available. ❗ The operator's personal guarantee is not taken into account. ⚠️ The financial health of the operator is unknown as no financial statements have been provided. Unfortunately, there is no information available about project delays or potential losses due to the platform being too recent. Overall, the Dieppe Horizon project at Tokimo has some strengths such as the high projected yield, low Loan to Sale ratio, and a promising location. However, the low mortgage coverage and the lack of financial information about the operator are concerning. It is important to carefully evaluate the risks associated with the extensive renovation required and the potential market demand for the properties.