The project Ilot Vert by Koregraf

Review of the project Ilot Vert by Koregraf

Review's score :

This review is proposed by Grégory Vaur on 04/01/2024

⏰ The project starts on 11/01/2024 10h00
💰 The estimated rate of return is 10.5% per year.
⏱ The duration of the project is 15m
💼 Minimum amount to invest is ?

🤖 Review's summary

Project Analysis: Ilot Vert at Koregraf analyzed by Grégory Vaur

The project is scheduled to take place on January 11, 2024 at 10:00:00.

Overall Opinion: The project guarantees are relatively weak, but the selling price is realistic. However, there is uncertainty regarding pre-commercialization and a low margin in case of unforeseen events.

👷‍ Project Type: Real Estate Development

💶 Funding: 630,000 EUR

⏰ Capital Repayment: In fine; Interest: In fine

Project Description: The project involves the construction of 18 individual houses and 48 parking spaces. The goal is to sell the entire block to social landlords. Construction work started on November 9, 2023, with delivery scheduled for the 4th quarter of 2024.

Location: Cormontreuil is a town with 7,000 inhabitants located 7 km from the city center of Reims and 40 km from Châlons-en-Champagne (via the A4 motorway).

✅ Strengths

Rental Yield: 10.5% - High
Rental Yield is above the average rental yield (10.5%) of recent projects at Koregraf

❗️ Weaknesses

LTA (Loan to Acquisition): 222% - High
LTS (Loan to Sale): 43% - Very Low
Operator's Commitment: 12% - Low

Type of Guarantee:

Operator's personal guarantee with a net worth of 3M€ - Weak
Guarantee on the holding company (equity amount: 724k€, low compared to debts) - Indebted company
Health of the company carrying out the operation: No balance sheet provided
Pre-commercialization: 100% pre-commercialized to 2 social landlords, but no information on potential suspensive conditions

✅ Bonuses

Within 2 km of a commercial area (supermarket, car dealership, bakery...)
Realistic Selling Price (3589€/m²), slightly above the average price (3106€/m²) - can be explained by the fact that these are new houses
New houses meeting the RE2020 2025 threshold
Building permit obtained and cleared
Experienced project developer with several real estate development projects already completed
Quality of the platform: Low percentage (0.81%) of delays over 6 months at Koregraf, with no permanent losses

❗️Warnings

Optimistic scenario margin: 5% - Adequate margin
Pessimistic scenario margin: 2% with a 5% increase in construction budget - Low margin
Considerable construction work representing 71% of the cost price
Operator has 2 ongoing projects and outstanding financing - Source: hellocrowdfunding.com

Bonus: No bonus code provided

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My Opinion:

This project seems to have both positive and negative aspects. The rental yield is high and above the average, which is a good sign. The project also benefits from being located near a commercial area, which can attract potential buyers. However, there are some weaknesses, such as the high Loan to Acquisition ratio and the low margin in case of unforeseen events. The operator's commitment is also relatively low, which may raise concerns about their dedication to the project.

Overall, while there are risks involved, the project seems feasible and has the potential for a good return on investment. However, it is important for potential investors to carefully assess the risks and make an informed decision.

Historial rates of return Koregraf

Investor votes results for the project: Ilot Vert

40 voters
👎60% 👍8% 🤷3% 🏳️30%
To vote :

Grégory Vaur
Grégory, I am 26 years old and have been an investor in real estate crowdfunding, stock markets and crowd-lending for around 1 year. I trained myself by watching videos on these subjects. I am currently registered on the first brick, Clubfunding, Raizers...