The project code name “ACE” is a unique opportunity to partner with a family having developed since 1996 a premium Real Estate portfolio composed of mainly Chalets/hotel residence valued at around EUR 160M.
The developers are now willing to raise minimum EUR 20M via a bond in order to acquire and develop new Real Estate programs in the French Alpes, Switzerland and Italy.
Proposed Bond summary (to be discussed):
- EUR 20M Private Debt Financing
- Minimum ticket = EUR 1M
- Debt maturity = 2025
- Yield = 6% / year
- Guarantee = Pledge of the shares of the holding company that owns 49.5% of a Real Estate assets portfolio composed of 5 hotels valued at EUR 160M
The deal can be structured in Switzerland or France.
Key Investment Considerations:
I. Project Attractiveness
1. Value of the Guarantee = EUR 80M (4 times the financing need of EUR 20M)
2. Holding Company total debt = EUR 6M (Less than 4% of total assets estimated value)
3. Experienced and solid management team with proven track-record since 1996
II. Attractive Market and Economic Outlook
1. France and Switzerland = the biggest ski resorts in the world after the U.S
2. 40% of the tourism in France is provided by ski resorts
3. Real Estate prices have been increasing for decades; +2.2% for Les Arcs and +3.4% for Val-Thorens in 2017
III. Numerous Projects in the Pipeline (see below some examples)
1. 4 individual chalets in the Swiss Alps: Funds required = EUR 5M
2. 2 buildings with around 40 apartments in Montreux (Switzerland): Funds required = EUR 4M
3. Chalet/Hotel in Megève (French Alps): Funds required = EUR 25M