All posts by twenty2uTwo

CORELOG, the logistics vehicle of TwentyTwo Real Estate acquires a portfolio of warehouses from Affine

CORELOG has completed the purchase of a portfolio of five warehouses from French listed company Affine for a total consideration of €42.2m.

CORELOG is an OPPCI (French private REIT) dedicated to investments in logistic and industrial properties and has recently been set up by TwentyTwo Real Estate and Massena Partners on behalf of a common investment vehicle.

This acquisition was financed with a mortgage debt facility provided by the bank CA-CIB. The OPPCI is managed by Swiss Life REIM. Scaprim Services has been appointed as asset manager and property manager of the portfolio and announces the recruitment of Armand Sueiras as responsible for logistic investments.

The portfolio acquired includes logistics platforms located in France on the North-South logistic axis in Bussy-Lettrée (51), Maurepas (78), Saint-Etienne Molina (42), Saint-Cyr-en-Val (45) and Saint-Germain-Lès-Arpajon (91).

For TwentyTwo Real Estate, this transaction and, in a broader sense, the creation of this new logistics platform alongside Massena Partners, is part of its strategy to significantly develop its real estate investment activities.

In this transaction, the OPPCI Corelog was advised by SCAPRIM Asset Management, Arthur Loyd Asset Management, the legal firm Archers, the notary office Allez & Associés and Swiss Life REIM; CA-CIB was advised by the legal firm Fieldfisher Waterhouse and the notary office Ginisty. The notary office for the seller was Haussmann Notaires.

Züblin Immobilière France: capital increase, convertible bond issue, strengthening of operational structure, refinancing of bank debt, changes in governance

Real Estate Opportunities Fund I, an investment vehicle affiliated to TwentyTwo Real Estate and Massena Partners, becomes the largest shareholder

Capital increase and convertible bond issue for an aggregated amount of €32.3M

As announced June 12, 2015 by Züblin Immobilière France, the company REOF Holding Sàrl (subsidiary of Real Estate Opportunities Fund I) and the company TwentyTwo 1 Credit sàrl, respectively subscribed to a reserved capital increase of Züblin Immobilière France of € 11.5 million and to a reserved issue of bonds convertible into Züblin Immobilière France shares for € 20.8 million.

REOF Holding also acquired all the bonds redeemable in Züblin Immobilière France shares held by Lamesa Holding. REOF Holding now holds 50.1% of share capital and voting rights of Züblin Immobilière France (on an undiluted basis). The transaction has no impact on the SIIC regime.

These transactions, which are described in the prospectus published July 22, 2015 (AMF visa 15-402) were authorized by the Annual General Shareholders Meeting on July 27, 2015.

New Mortgage loan for €132M

Concomitantly, Helaba bank has granted Züblin Immobilière France and its subsidiary Züblin Immobilière Paris Ouest 1 a mortgage loan of € 132 million for a period of 5 years. Existing bank debts have been fully reimbursed today.

Strengthening of the operational structure

The management of the real estate assets held by Züblin Immobilière France and its subsidiary Züblin Immobilière Paris Ouest 1 was assigned today to SCAPRIM Asset Management, a subsidiary of SCAPRIM SERVICES, the French real estate services arm of TwentyTwo Real Estate, also acting as advisor to Real Estate Opportunities Fund I on the transaction.

Changes in Governance

Anne Genot, Muriel Aubry, Philippe Couturier, Daniel Rigny and Alexander Gruca become members of the board of directors in replacement of Corinne Bourbon, Anna Samoletova, Vladislav Osipov, Yakov Tesis and Pierre Essig. Philippe Couturier was appointed chairman.of Züblin Immobilière France. Pierre Essig was confirmed in his position as CEO, non director.

For more information regarding the profile of newly appointed directors please see below or visit the company web site: www.zueblin.fr

Following these changes, the governance of Züblin Immobilière France is organized as follows:

Philippe CouturierChairman

Board of directors
Daniel Rigny Director
Anne Genot Director
Iosif Bakaleynik Director
Muriel Aubry Independent Director
Alexandre Gruca Independent Director

Audit Committee
Alexandre Gruca        Chairman
Muriel Aubry
Anne Genot

Nomination and Compensation Committee
Muriel Aubry             Chairman
Alexandre Gruca
Iosif Bakaleynik

Management
Pierre Essig                     CEO
Eric Berlizon                   CFO

Shareholders % of voting rights[1]
REOF Holding 50.1%
Züblin Immobilien Holding AG 33.5%
Float 16.0%
Directors and Management 0.2%
Treasury shares 0.2%
TOTAL 100.0%

[1]Upon redemption of 2,500 bonds redeemable in action and conversion of 13,522,352 convertible bonds, REOF Holding and TwentyTwo Credit 1 together would own 74.2% of the share capital and the voting rights of ZIF. Provided that should these entities were to hold over 60% of the share capital and the voting rights, it being specified that in order to maintain the SIIC regime ZIF, a sale of shares would be made to third parties so that their aggregate ownership would remain below the threshold of 60%

SCAPRIM Asset Management wins Grand Hôtel Dieu’s asset management and project monitoring assignments

SCAPRIM Asset Management, the real estate services arm of TwentyTwo Real Estate, has been appointed as asset manager of Grand Hôtel Dieu, Lyon, France, by French insurance company Crédit Agricole Assurances.

The historical monument’s rehabilitation is the largest listed building refurbishment project in Europe. Upon delivery, the c. 50,000 sqm landmark property located in the heart of Lyon and dating from the 12th century will host retail, office and residential facilities as well as a 5-star Intercontinental hotel. www.grand-hotel-dieu.com

The first tranche of this project, which is developed by Eiffage and has been acquired by Credit Agricole Assurances, is targeted to be delivered in December 2017.

SCAPRIM Asset Management has advised Credit Agricole Assurances on the acquisition of the property, and has been appointed as asset manager of the project together with SCAPRIM AMO, acting as project monitor.

Anne Genot, chief executive officer of Scaprim Asset Management said:

“These assignments mark a major step in the development of SCAPRIM SERVICES. We are honoured to be appointed as asset manager of such a prestigious project.”

Agreement with TwentyTwo Real Estate and Massena Partners to strengthen financial and operational structures of Züblin Immobilière France subject to conditions precedent

Shareholders Meeting convened on 27 July 2015

The new investors would invest €32.3 million in Züblin Immobilière France

Züblin Immobilière France and Züblin Immobilien Holding AG, its current controlling shareholder, have signed today an investment agreement pursuant to which, investment entities advised by, and affiliated to, TwentyTwo Real Estate and Massena Partners would subscribe to a reserved capital increase of 11.5 million euros and a reserved convertible bond for a total amount of 20.8 million euros. The transaction would significantly strengthen the financial situation of Züblin Immobilière France by injecting 32.3 million euros of fresh capital, which would cover its financing needs over the next 30 months and reduce its bank indebtedness.

Concurrently with the above mentioned subscriptions, the investors would buy from Züblin Immobilien Holding AG its shareholder loan.

The new investors would buy shares and mandatory convertible bonds owned by Lamesa Holding S.A.

Züblin Immobilière France has also been informed that the investors have separately entered into an agreement with Lamesa Holding S.A, by which it would buy its shares in Züblin Immobilière France, representing 11.8% of the share capital of the company. The investors would also buy all the bonds redeemable in shares of the company held by Lamesa Holding S.A.

TwentyTwo Real Estate and Massena Partners via their jointly controlled investment vehicle would become new anchor shareholders of Züblin Immobilière France

Following these transactions, the investors would become the new anchor shareholders and would hold 50.1% of the share capital and voting rights of Züblin Immobilière France on an undiluted basis (74.3% on a fully diluted basis).

These operations would not affect Züblin Immobilière France SIIC status.

TwentyTwo Real Estate would also strengthen Züblin Immobilière France operational structure by making available the services of its subsidiary SCAPRIM SERVICES, a French professional asset & property manager, managing 6.5 billion euros of real estate properties in France.

Conditions precedent to the completion of the transactions

The completion of these transactions is subject to certain conditions precedent, including:

  • The new investors obtaining, ahead of Züblin Immobilière France Annual General Meeting, a waiver from the Financial Markets Authority to the obligation to file a mandatory offer on the shares of Züblin Immobilière France;
  • Approval by the General Meeting of shareholders of Züblin Immobilière France to be held on 27 July 2015 of the proposed terms for the capital increase and the issuance of the convertible bonds reserved to the new investors, it being specified that Züblin Immobilien Holding AG, currently holding 59.2% of capital and voting rights of the company, would commit to vote in favor of these resolutions;
  • New mortgage financing or extension of the existing mortgage loans’ maturity;
  • No major risks revealed by the confirmatory due diligence.

Independent expert, Farthouat Finance appointed by Züblin Immobilière France’s board of directors to provide an opinion on the fairness of the transaction for all shareholders

Züblin Immobilière France’s Board voluntarily appointed Farthouat Finance as independent expert to provide a fairness opinion on the transaction.

Pierre Essig, CEO of Züblin Immobilière France stated that “The arrival of TwentyTwo Real Estate and Massena Partners, as new anchor shareholders of the company, their cash investment of 32.3 million euros and the operational support TwentyTwo Real Estate would provide through its subsidiary SCAPRIM SERVICES, will be great news for the company, its employees, its partners and the tenants of its properties. With this new financial and operational support, Züblin Immobilière France is determined to complete the leasing of its high-end retrofitted properties and restore its profitability.”

POWERHOUSE HABITAT announces the registration of its document de base with the Autorité des marchés financiers (AMF) in connection with its contemplated IPO on Euronext Paris

  • Emergence of a residential real estate pure play in France
  • Contemplated IPO on the Euronext Paris regulated market

Paris, May 22, 2015. Powerhouse Habitat, a residential real estate pure play company, announces the registration of its document de base by the Autorité des marchés financiers (AMF) under number l.15-042.

View the POWERHOUSE HABITAT Website.

The registration of the document de base by the AMF constitutes the first stage of the IPO process for Powerhouse Habitat, subject to market conditions and the regulatory prerequisites, including in particular the delivery by the AMF of its visa on the prospectus relating to this transaction.

Daniel Rigny, President of Powerhouse Habitat, commented: “The contemplated IPO of Powerhouse Habitat will provide investors with access to a unique portfolio of residential properties spread across France.

The French residential rental market offers numerous investment opportunities which we want to take advantage of.

Powerhouse Habitat stands out for its long-term ownership strategy and local management, which places tenant satisfaction at the heart of its priorities. By accessing the capital markets, the company intends to play a major role in the private rental market and to contribute to the development of ownership, financing and management models for French housing.”

Powerhouse Habitat currently owns an attractive portfolio of over 7,000 housing units which are leased to EDF and valued at 1.2 billion Euros[1]. This unique portfolio is comprised of 91% of single-family homes, with an annual gross yield of 5.9%1.

Prospectus

Powerhouse Habitat’s document de base is available free of charge on the company Internet site (www.powerhouse-habitat.com) and the AMF Internet site (www.amf-france.org) and is also available upon request from Powerhouse Habitat, at 52B rue de la Bienfaisance, 75008 Paris. Powerhouse Habitat draws the public’s attention to Chapter 4 “Risk factors” contained in the prospectus registered with the AMF.

About Powerhouse Habitat

Powerhouse Habitat is a French property company specializing in residential real estate. Powerhouse Habitat currently owns an attractive portfolio of over 7,000 housing units which are leased to EDF. This unique portfolio is comprised of 91% of single-family homes, with a gross annual yield of 5.9% as at December 31, 2014.

Powerhouse Habitat aims at positioning itself as the leading, listed residential real estate company in France. In order to achieve this ambition, Powerhouse Habitat relies on a selective acquisition strategy of affordable housing portfolios, principally located in the French regional markets which are supported by strong economic growth and demographics.

Powerhouse Habitat intends to apply for listing in the near future on Euronext Paris, in order to finance its growth, and will opt for SIIC status (French REIT status) by January 2016.

[1] As at December 31, 2014

 

Press contact

FTI Consulting  Eric Fohlen-Weil / Astrid Villette   pwh@fticonsulting.com / +33 1 47 03 68 10

Disclaimer

This communication does not constitute and may not be treated as constituting an offer to sell or solicitation of an offer to sell any securities to the public.  The distribution of this communication may in certain jurisdictions be restricted by law.  Persons who come into possession of this communication are required to inform themselves about and observe any such restrictions.

This announcement is not a prospectus within the meaning of the Prospectus Directive.

In France, an offer of securities to the public may only be made pursuant to a prospectus that has received an AMF visa.

With respect to each Member State of the European Economic Area other than France which has implemented the Prospectus Directive (a “Member State”), no action has been undertaken or will be undertaken to make an offer to the public of securities requiring a publication of a prospectus in any Member State. As a result, in Member States, this communication may only be distributed (a) to any legal entity which is a qualified investor as defined in the Prospectus Directive; or (b) in any other circumstances falling within Article 3(2) of the Prospectus Directive.

For the purposes of this provision (i) the expression an “offer of securities to the public” in relation to any securities in any Member State which has implemented the Prospectus Directive (as defined below) means the communication in any form and by any means of sufficient information on the terms of the offer and the securities to be offered so as to enable an investor to decide to purchase or subscribe the securities, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State, (ii) the expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the

extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and (iii) the expression “2010 PD Amending Directive” means Directive 2010/73/EU.

These selling restrictions with respect to Member States apply in addition to any other selling restrictions which may be applicable in the Member States that have implemented the Prospectus Directive.

This communication is directed only at persons: (i) who are outside of the United Kingdom and such communication is not restricted by law, (ii) who have professional experience in matters relating to investments and fall within the definition of “investment professionals” contained in article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”) or (iii) or are persons falling within article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order, or fall within another exemption to the Order, on the condition that in respect of persons falling within (ii) and (iii), this communications is only directed at persons that are “qualified investors” as defined in the Financial Services and Markets Act 2000 (all such persons referred to in (ii)or (iii) together being referred to as “Relevant Persons”).  The information contained in this communication is solely directed at Relevant Persons and may not be used or relied upon by any other parson.  Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

This communication is not for publication or distribution, directly or indirectly, in or into the United States. This communication does not constitute or form part of an offer of securities for sale or solicitation of an offer to purchase securities in the United States, Canada, Australia, Japan or in any other jurisdiction in which such offer may be restricted.  The securities referred to in this communication have not been, and will not be, registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States, except on the basis of an applicable exemption from registration or in a transaction not subject to the registration requirements of the Securities Act.  There will be no public offer of the securities in the United States

———————-

Not to be distributed, whether directly or indirectly, in the USA, Canada, Australia or Japan

SCAPRIM Asset Management wins Cœur Défense’s asset management assignement

SCAPRIM Asset Management, the real estate services arm of TwentyTwo Real Estate, has been appointed as asset manager of the “Coeur Défense” property in Paris La Défense, France, by Heart of La Défense (HoLD), a company acquired by Lone Star Real Estate Fund III.

With 160,000 square meters of office space, 2.800 parking places, 7 in-house restaurants and a conference center, Coeur Défense benefits from a unique positioning in the heart of the La Défense office district. This property, built in 2001, is the largest office complex in Europe, and one of the most emblematic of its kind. www.coeurdefense.com

This assignment marks another major step in the acceleration of the development of SCAPRIM Asset Management’s commercial real estate activities.

On this occasion, SCAPRIM Asset Management has appointed Nicolas Lutgé as Head of Asset Management of its commercial real estate division. Nicolas Lutgé, 36 years old, graduated from ESTP and ESSEC Business School and has worked for twelve years at CBRE Global Investors, focusing on value-added real estate investments in France and Benelux.

Powerhouse France completes €793.5 million refinancing of residential portfolio with BNP Paribas

Landmark deal positions Powerhouse France for further growth

TwentyTwo Real Estate (the “Company”) announces that Powerhouse France, an investment vehicle managed by the Company, has completed a €793.5 million refinancing arranged and underwritten by BNP Paribas.

The six-year financing package comprises a €205 million corporate financing facility provided to Powerhouse France and a €588.5 million senior mortgage facility provided to its subsidiary S.A.F.R.A.N..

Powerhouse France owns, through S.A.F.R.A.N., a portfolio of circa 7,140 mainly single family residential units (the “Portfolio”) with a value of around €1.2 billion. Located across France, the assets are leased to EDF, the state owned French electric utility company, under a long term master lease agreement. The Portfolio was acquired by Powerhouse France in June 2013.

The Portfolio is managed by Scaprim Services, the specialist real estate services arm of TwentyTwo Real Estate in France, which has been asset and property manager for the portfolio for the last 15 years.

The €793.5 million financing contributes to the group’s positioning for a further growth of its portfolio of residential properties.

Daniel Rigny, founder and managing partner of TwentyTwo Real Estate said: “We are very pleased to have received such significant support from BNP Paribas to complete this strategic refinancing. This transaction is evidence of the strength of our management platform and the quality of this substantial portfolio, which provides a long term inflation hedge whilst generating strong cashflow.

“With this refinancing now complete, and the capital structure fully adapted to its strategic development, Powerhouse France is in a robust position to grow its property portfolio further. We believe that the affordable end of French housing market, which is the focus of Powerhouse France, displays good fundamentals supported by strong demographics and offers attractive growth prospects. Given its scale, access to capital and the nationwide expertise in the residential sector provided by Scaprim Services, we firmly believe that Powerhouse France is ideally placed to seize future growth opportunities in the French market.”

FINANCIERE SCAPRIM becomes SCAPRIM SERVICES

FINANCIERE SCAPRIM continues its transformation within the TWENTYTWO REAL ESTATE group of companies thanks to new governance and resources in order to better meet client needs.

FINANCIERE SCAPRIM is renamed SCAPRIM SERVICES. The key activities of the firm are now trading under three new brand names: SCAPRIM Property Management (previously Gestrimelec), SCAPRIM Asset Management and SCAPRIM Ventes (previously Scaprim GA).

The headquarters the SCAPRIM SERVICES companies have been moved to 52B, rue de la Bienfaisance, in the heart of the Paris CBD, in new office space facilitating the integration between the firm’s activities and offering new meeting space to welcome clients.

Finally the governance of the firm has been transformed with the creation of an executive committee chaired by Philippe Couturier, CEO of SCAPRIM SERVICES, and a Supervisory Board chaired by Marius Leroux.

The Executive Committee is comprised of, in addition to its Chairman, Alain DAVOUST, deputy CEO of SCAPRIM SERVICES, Anne GENOT, deputy CEO of SCAPRIM Asset Management, Olivier DUBOUREAU, CEO of SCAPRIM Property Management, and Laurent VOURIOT, deputy CEO of SCAPRIM Property Management.

Daniel RIGNY, founder of TWENTYTWO REAL ESTATE, and Michel VILAIN are members of the Supervisory Board.

Philippe COUTURIER, chairman of Executive Committee said: « Our ambition to become a leading independent real estate service provider to institutional clients in France follows a clear and well defined road map, of which the present transformations are key milestones»

Marius LEROUX, chairman of the Supervisory Board, added: « This step marks the beginning of a new development phase in the history of SCAPRIM. In the context of ever changing real estate market and economic environment, the capacity of a company to adapt to change is a key asset to succeed »

About SCAPRIM SERVICES

Founded by Marius Leroux in 1992, SCAPRIM SERVICES is the real estate services arm of TWENTYTWO REAL ESTATE in France which offers to institutional clients a “one-stop-shop” range of services dedicated to the management of real estate assets and value creation. SCAPRIM SERVICES manages circa €6 billion of assets generating €300 million of rents per annum comprised of 1,000,000 m² of office, industrial and retail assets as well as circa 17,000 residential units. SCAPRIM SERVICES is also a leading residential brokerage company with circa 10,000 units sold on behalf of clients during the last ten years. SCAPRIM SERVICES operates all over France through four regional headquarters and 13 local agencies employing a total staff of 150.

www.scaprim.com

TwentyTwo Credit I completes a second investment

TwentyTwo Credit I has invested in a mezzanine bond financing for the Resonance office development by CODIC group

TwentyTwo Real Estate (“the Company”) is pleased to announce that TwentyTwo Credit I, an investment vehicle managed by the Company, has partnered with CODIC and Deutsche Pfandbriefbank to fund a circa 24,000 sqm office development named “Resonance” located in Bagneux, France.

TwentyTwo Credit I provided CODIC with €24 million mezzanine bond financing, while Deutsche Pfandbriefbank provided a €50 million senior financing facility.

The Resonance development is located in the “Victor Hugo” regeneration area of Bagneux, in the southern outskirts of Paris, which will benefit from the “Grand Paris” infrastructure. The property will offer large attractive floor plates of circa 3,000sqm while boasting the latest environmental credentials. Neopost has already agreed to lease about a third of the property on completion.

CODIC is a Belgian real estate development company founded in 1970 focusing on multifunctional projects such as office buildings, business parks and shopping centres. It has expanded its business to France which is now one of its main development markets.

Daniel Rigny, founder of TwentyTwo Real Estate said: “We are pleased to support CODIC to develop this high quality property. This second investment by TwentyTwo Credit I is consistent with our strategy of making investments in commercial real estate benefiting from structural capital protection and attractive return expectations”.

TwentyTwo Real Estate supports the Bloomfield Learning Centre

The Bloomfield Learning Centre (the “Centre” www.blearning.biz) teaches literacy skills to some of the most disadvantaged and vulnerable children in London. These are children with specific learning difficulties, primarily dyslexia, whose parents can not afford to pay for specialist tuition. Without the right help, the majority of these children will remain illiterate, leaving school without any qualifications. In a competitive, sophisticated city like London, a truly fulfilled life is impossible for an illiterate adult. There are no training places, no apprenticeships, no job opportunities. Lack of educational attainment leads to unemployment, poverty, criminal involvement, homelessness and poor parenting skills – 40-50% of young offenders have dyslexia compared to between 5 and 10% of the general population! The Bloomfield Learning Centre aims to give as many needy children as possible the opportunity of a better life.

Since gaining charitable status in 1993, the Centre has taught thousands of children to read. The work is performed mainly on a charitable basis because the necessary specialist resources are rarely available in schools and there is an absence of government funding. The Centre is the only significantly subsidized dyslexia teaching centre in London providing support and public benefit to underprivileged pupils.

We have decided to support the teachers and the pupils of the Centre by donating to their cause.

Should you wish to join us in supporting this worthy endeavour please contact us at info@twentworealestate.com or please contact Jane Orr, the head teacher, at the Centre at jane@blearning.biz. Visitors are always welcome.