The project Cannes Basse Californie by Tokimo

Review of the project Cannes Basse Californie by Tokimo

Review's score :

This review is proposed by Sébastien on 14/01/2024

⏰ The project starts on 18/01/2024 20h00
💰 The estimated rate of return is 11% per year.
⏱ The duration of the project is 12m
💼 Minimum amount to invest is 100€

🤖 Review's summary

Analysis of the Cannes Basse Californie project at Tokimo

The Cannes Basse Californie project is a straightforward purchase-renovation-resale project taking place in a resilient real estate market. Overall, the project seems promising, though there are some potential drawbacks to consider.

Project Details

Type of Project: Purchase - renovation/construction - resale

Amount to be funded: 178,000 EUR

Repayment: In fine (capital) / In fine (interest)

Strengths

✅ High yield of 11%.

✅ Operator's commitment of 20% is commendable.

✅ The property is located in Cannes, a city known for its attractiveness in the real estate market.

✅ The apartment is situated in a residential neighborhood, close to the beach, the famous Croisette, and the city center.

✅ Acquisition price of 3,382 EUR/m2, which is relatively lower compared to the average price of 5,386 EUR/m2 in the same area.

✅ Positive track record of the project manager with previous successful operations in the region.

✅ Limited renovation works, including the installation of a kitchen and windows, at a cost of 12% of the acquisition price.

✅ Reasonable renovation cost of 425 EUR/m2.

Weaknesses

❗️The yield is slightly lower than the average yield for previous projects at Tokimo.

❗ LTA (Loan to Acquisition) and LTS (Loan to Sale) ratios are relatively high.

❗ LTC (Loan to Cost) ratio is at 96%.

❗ Margin in pessimistic scenario (10% discount) is low at 0.8%.

❗ No pre-commercialization has been arranged.

❗ Personal guarantee has not been considered.

Warning

⚠️ The operator's financial health is not presented, as the company is recently registered.

⚠️ Information on delays of over 6 months and definitive losses is not available due to the platform's recent establishment.

In conclusion, the Cannes Basse Californie project at Tokimo presents an opportunity for investors to attain a high yield in a resilient real estate market. The location, limited renovation works, and favorable acquisition price contribute to the project's potential success. However, there are some concerns, such as the high loan ratios and low margin in the pessimistic scenario. It is important for investors to carefully evaluate the risks and benefits before making a decision.