⏰ The project starts on 19/01/2024 12h30 💰 The estimated rate of return is 8.2% per year.
⏱ The duration of the project is ∞ 💼 Minimum amount to invest is 100€
🤖 Review's summary
Analysis of the Montpellier - L'Ecusson project by Tantiem analyzed by Sébastien HO-YU-HIN
The project is scheduled to take place on January 19, 2024, at 12:30:00. Overall, it is well located and the operator has a good reputation. The mortgage coverage is acceptable. However, it would have been desirable to have more information about the tenant's financial stability.
Type of project: Rental investment
Total funding: 648,100 EUR
Distribution: Capital: In fine. Coupons: Quarterly
Property: 1 commercial space of 114 m² occupied by the restaurant "Les Enfants Rouges" in Montpellier, 34.
Minimum investment: 100 euros
Duration: Infinite
Property type: Commercial real estate
✅ Strengths:
Rental yield of 6.5% and target IRR (return on investment) of 8.20% - Although slightly lower than other fractional real estate platforms, it falls within the range of 5% to 9% for commercial real estate in Montpellier.
The yield is higher than the average yield (7.33%) of recent projects on Tantiem.
Special legal mortgage guarantee by the lender.
Mortgage coverage: 84% - Acceptable.
The asset is leased to SARL JAPS, the owner of the business.
Acquisition price at 545k, which is 4780 euros/m2, lower than the estimated capitalization price: 26400*100/5.7 = 688k.
Condition: Minimal landlord responsibility for renovations, and all maintenance costs are the tenant's responsibility (triple net lease).
Location: Situated in the heart of Montpellier, in a mixed residential and commercial district. Ground floor and 1st floor of a 3-story building. 5 minutes away from Place de la Comédie.
Tenant quality: The restaurant has a good reputation in Montpellier, with a rating of 4.4/5 and 1.1k reviews on Google.
9-year lease until June 2032 - Provides good visibility for 8 years, during which the tenant is committed to paying rent.
Longevity of the restaurant.
Residential real estate market in the neighborhood has seen a 4.4% increase over the past year (Meilleurs Agents).
❗️ Weaknesses and Warnings:
Payment of the first rent installment will only start in April 2024 - 3 months without income.
No photos available at the moment.
No information about the tenant's financial stability, although information is available on Pappers. The 2022 financial statement shows a negative net worth and a DN/EBITDA ratio of 8.47. No information on the 2023 financial statement.
Restaurant sector is sensitive to unfavorable economic conditions.
In conclusion, the Montpellier - L'Ecusson project at Tantiem has several positive aspects, such as its location, the reputation of the tenant, and the yield, which is higher than the average of recent projects on the platform. However, it is important to consider the potential risks, such as the lack of information about the tenant's financial stability and the sensitivity of the restaurant sector to economic downturns. Overall, it seems like a promising investment opportunity, especially for those looking for long-term returns in the commercial real estate market in Montpellier.
Historial rates of return Tantiem
Investor votes results for the project: Montpellier - L'Ecusson
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