Compagnie de Phalsbourg

Presentation of the company

Compagnie de Phalsbourg is the holding company set up in 1989 of the Phillipe Journo Group active in the real estate management and development sector. The group, managed by Philippe Journo, has 230 employees and is based in Paris 1. The group is present in France, now in Spain and Portugal.

The group’s main activities are:

• The acquisition and management of a real estate portfolio.
• The real estate developpment.

Diversification of the Group with the distance selling of hunting and fishing products with 16 stores under the Terres&Eaux brand and Ediloisir, acquired in 2017.

The company works with Boulanger, Decathlon, Darty, The Kooples among others.

Historically, the group developped and managed commercial real estate. For the past four years the group has decided to invest in other real estate territories: Housing, Offices, Hotels, but also to invest massively in Greater Paris and the major French cities.

In 2016, the Phalsbourg Company was the only winner of three “Reinvent Paris” competitions.

The group stand out from the competitors by the an exceptional architecture, ecology, the well-being of our customers and the digital as a link with their customers.

The group had 2 delayed projects but in process appeal.

Project Description

The company requests a loan of 5 000 000 € over 36 months with 6 months of deferred repayment to finance its developement, acquisition of land and related development costs, studies and valorisation expenses. This project will be realised next month.

The amount offered on the platform is limited to 1 000 000€, which is in line with the 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 132 690 000 € in 2017 and an experienced team, the group has a good track record combined with a two-digits operating margin.

In 2017, the variation of the revenue and the profitability is linked to the acquisition of Ediloisir. In 2018, the revenue is forecasted at 142M€ with a similar profitability. The forecast is based on the performance of 2019/2020 with a budget of 154 Mio€ on 2020.

The group has an excellent repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 2,24 and an excellent financial structure with a positive cash balance. The total debt has been restated of the valuation of real estate with a conservative discount.

The analysis of the project leads to a credit rating of A+ and a 4,85% annual interest rate.

*The multiple of FCCR at 2,24 means that the company has a safety margin of 124% 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.

Strong points:

• Good historical performance based on diversified client base.
• Excellent repayment ability with a forecasted FCCR of 2,24.
• Compagnie de Phalsbourg has become the first private french real estate Group in France.

Points of caution:

• Cyclical real estate activities.