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Finadis

presented by October France

€500,000

6.25%

36 months

B+

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location

Location

Paris, France

activity

Activity

Properties

Presentation of the company

Created in 2000, FINADIS is the holding of the group ALSEI active in the real estate sector. The group, managed by Jean Christophe Courné Noléo , has 90 employees and is based in Paris 3.

The group’s main activity is:

  • Commercial and residential real estate development
  • Allotment and servicing of properties
  • Asset and property management

Beyond its initial profession as a real estate developer, ALSEI has broadened the scope of its skills from the development districts, the design and implementation of projects to the delivery to its user, the management and maintenance of the building. ALSEI is particularly well known for its presence on the divisible real estate market and the accuracy of its responses to the real estate needs of SMEs. Alsei has recently delivered the first Minergie labeled building in France (Swiss label for high energy savings) and finalized the acquisition of the DAVRIL Group in order to pursue its development in the residential real estate market segment in Ile de France.

The group is financially and operationally supported by major banks as well as specialized funds such as 123 IM and Ciclad.

Project Description

The group requests a loan of 500 000 € over 36 months with 3 months of deferred repayment to finance software investments, recruitment campaigns as well as refurbishment works at the headquarters of its residential branch, located in Saint Leu la Forêt. This project will be realised in the next few months.

As a reminder, the October lending community supported the ALSEI group two times in 2017 for a total of 3 300 000 € to finance operational and marketing costs to support its national development.

This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 3 months, the lenders will only receive interest; the following 33 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

The amount offered on the platform is limited to 245000€, 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 86 094 000 € in 2017 and an experienced team, the group has a good track record combined with a strong operating margin.

In 2017, profitability was slightly affected due to the recruitment and structuring of the Group to meet the growth expected in 2018 and 2019. The forecast is based on 2017 performance taking into account the expected data.

The group has a solid repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 2,04 and a good financial structure, with a forecast net debt / ebitda ratio of 3,1 and a net debt / shareholder equity of 116% integrating 2017 non distributed net result and partially deducted by the book value of the historical real estate assets owned by the group. Bonds due to mature after Lendix loan term have been qualified as quasi equity.

The analysis of the project leads to a credit rating of B+ and a 6,25% annual interest rate.

Warning: As the project presentation indicates, ALSEI uses various sources of financing, including investment vehicles, convertible notes and capital such as the funds advised by the 123IM group, which Olivier Goy (founder and chairman of the management board of October) created and managed until 2014. Olivier Goy is however no longer operational in 123IM and has no impact on fund management. In addition, we recall that Lendix executives (including Olivier Goy) invest systematically and significantly in all projects presented on October in order to align their interests with those of lenders.

*The multiple of FCCR at 2,04 means that the company has a safety margin of 104% 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 (Scores & Decisions, Corporate Banking File). 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 a diversified client base of individuals and institutionals.
  • Solid repayment ability with a forecasted FCCR of 2,04 reinforced by the support of banking pool, shareholders and financial partners.
  • Longstanding track record with more than 15 years of experience in the industry.

Points of caution:

  • Real estate development activity can sometimes be delayed during construction with some underlying project risks