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Acropolis Investments

presented by October France

€1,550,000

6.75%

24 months

B

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location

Location

Chavanod, France

activity

Activity

Properties

Presentation of the company

Acropolis Investments is the holding company set up in 2008 of Alpine Lodges active in the real estate development and mangement sector. Alpine Lodges is managed by Patrick Remme has 30 employees and is based in Chavanod. The group is specialized in the building of high-end chalets and apartments in ski resorts. He is present in Get, Courchevel, La Tania, Meribel, Tignes and Val d’isères.

The group’s activity are:

  • Construction and real estate developpement (24 programs, 600 chalets, apartments and shops delivered).
  • Rental management and operations (75 lots in operation).
  • Catering (2 restaurants).
  • Hotel design and management.
  • Shops.

The group stands out from its competitors by its top-of-the-range positioning and perfect knowledge of its market.

Project Description

The company is seeking a loan of €1,550,000 over 24 months, including 3 months of deferred repayment to finance: the recruitment of new employees (€250,000); IT equipment and marketing tools (€150,000), and construction studies for future operations (€1,150,000). This project will be completed in the coming months.

The amount offered on the platform is limited to €759,500, which is in compliance with regulatory limits.

Analyst’s Opinion

The borrower is a holding company whose revenues are derived from services invoiced to its subsidiaries. The financial analysis was carried out on consolidated financial statements, which reflect the group’s performance.

With a turnover of 27 716 000 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

The group’s turnover is estimated at €28 million in 2018. To date, the group has a reservation rate of 44% and an order book of 167 million euros for operations to be carried out in the coming years.

In 2017, the decline in profitability is linked to the end of two major programs that generated additional costs.

The forecast is based on the historical performance.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,13 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,8 and a net debt / shareholder equity of 124%.

The analysis of the project leads to a credit rating of B and a 6,75% annual interest rate.

*The multiple of FCCR at 1,13 means that the company has a safety margin of 13% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Warning: Funds managed by 123IM have financed certain real estate development operations of the group in the past. To date, the funds managed by 123IM no longer have any direct interest in Acropolis Investments, with the exception of some residual indirect financing in group SCCVs. Olivier Goy (founder and CEO of October) created and managed 123IM until 2014. Olivier Goy is however no longer operational in 123IM and has no impact on fund management. In addition, we recall that October executives (including Olivier Goy) invest systematically and significantly in all projects presented on October in order to align their interests with those of lenders.

Strong points:

  • Good historical performance based on diversified client base.
  • Good repayment ability with a forecasted FCCR of 1,13 with the support of shareholders and the banking pool.
  • Experienced builder in a specific market.

Point of caution:

  • Cyclical real estate development activity.