The project Vignola by Raizers

Review of the project Vignola by Raizers

Review's score :

This review is proposed by Damien Cuyala on 18/01/2024

⏰ The project starts on 22/01/2024 14h00
⏱ The duration of the project is
💼 Minimum amount to invest is 1000€

🤖 Review's summary

Analysis of Vignola Project at Raizers Analyzed by Damien Cuyala

The project is scheduled to take place on January 22, 2024, at 14:00:00. Overall, the project has excellent mortgage coverage (149%!), and the property is very well located. The finishing works are to be completed by the developer (June 2024), and the resale price is justified by the property's new condition. However, the project's sponsor company is heavily indebted. In general, it is a good project, considering that the local real estate prices are experiencing a strong annual increase.

Project Details:

Type of project: Refinancing
EUR 550,000 to be financed
Repayment Capital: In Fine, Interest: In Fine

The operator is requesting refinancing from Raizers for a 133 m², 5-room apartment located on the 3rd floor of the Vignola residence in Porto-Vecchio, Corsica.

Strengths:

✅ High yield
✅ Above-average yield (10.81%) compared to recent projects at Raizers
✅ Low Loan to Acquisition ratio (67%)
✅ Low Loan to Sale ratio (61%)
✅ Loan to Construction Cost: 0%
✅ Operator's commitment: 74%
✅ First-rank mortgage guarantee type
✅ GAPD: Equity amount: 2.6 million EUR
✅ High mortgage coverage: 149%
✅ Rooftop terrace

Weaknesses/Concerns:

❗️ GAPD: Net debt ratio (EUR 22 million) / equity ratio (EUR 2.6 million) > 2.5
❗️ Health of the company carrying out the operation: Equity amount (EUR 2.6 million), net debt/equity ratio > 2.5
❗️ No Pre-sale (On the announcement website)

Location Details:

Location: Porto-Vecchio, Corsica
Population: 11,844
Close to amenities: Quiet area, near the sea
Points of interest: airport, train station, schools, shops, hospitals

Market Details:

✅ Estimated Exit Price: Realistic, close to the upper range at EUR 6,747 per m² for the project, while the local market is at EUR 9,101 per m²
❗ Margin in optimistic scenario: 10% - Correct margin
❗ Margin in pessimistic scenario (10% higher construction costs, 10% lower discount, 20% longer construction time): 5% - Correct margin
❗ Condition of the property: New, but unfinished!
✅ Condition of the street and neighborhood: Very good
📉 Prices in the city are increasing by +8.2%
✅ No urban planning risks
✅ Project's Sponsor track record: Over 38 projects
✅ Financing outstanding and delay of the operator: 38 ongoing projects, one delay
✅ Low difficulty of the works
✅ Realistic duration of the works

Geopolitical Situation:

✅ Low 6-month delay rate (7.26%) at Raizers
✅ 0% permanent losses at Raizers

BONUS:

Enter the Sponsor Code MBS during your registration. €50 after the first investment and €50 after the second investment. So, a maximum of €100 bonus.

➡️ Click here to sign up!

My Opinion on the Project:

This project seems to have a good potential for a high yield, considering the property's location and the expected resale price. The mortgage coverage is very high, which provides a level of security. However, the project's sponsor company's financial situation raises some concerns.

Overall, I would consider investing in this project, weighing the pros and cons. The location and market conditions make it an attractive opportunity, but it's important to follow the progress of the developer's finishing works and monitor the financial health of the sponsor company.

Historial rates of return Raizers

Investor votes results for the project: Vignola

46 voters
👎54% 👍15% 🤷15% 🏳️15%
To vote :

Damien Cuyala
Damien, 41 years old, I am a business manager in nuclear valves, I also have a company in the distribution of everyday products in short circuits with the credo of "made in France". I started at a young age to learn how to invest in the stock market in dividend stocks, ETFs, and from 2021 on small cap equity strategies, and recently I have been learning about options. In June 2022, I started real estate crowdfunding and I have invested a little over 73 Keuros since then, my investments are distributed across the following platforms: ClubFunding, Raizers, La Première Brique, Upstone, Baltis. I attach great importance to spending time analyzing each project before making the best decision for my investments. Finally, I also have investments in crowdlending, mainly on Lendermarket to diversify my assets as much as possible.