Real Estate Transaction: New Lot Structuring to Optimize Resale

This project involves acquiring a former France Télécom/Orange technical site in Besançon (25) and converting it into 20 new residential units for resale, either as a single portfolio to an institutional investor or individually.

The Property

The property has a total area of approximately 1,500 m², part of which will remain temporarily occupied by Orange. The project involves renovating about 1,010 m² of floor space, of which 806 m² is leasable.

The portfolio contains small, fully renovated units averaging about 40 m². It targets a highly liquid market with strong demand from private investors, real estate companies, and institutional investors.

Located in the heart of the Bourgogne–Franche-Comté region, Besançon has a diverse economy, a large student population, and strong residential demand, creating a favorable environment for marketing the program.

Structure of the Operation

The total budget for the project is €1,450,000, covering the costs to acquire and launch it.

To fully align the interests of all stakeholders, Lend and its partner, Holding JSF, are directly investing nearly €400,000 of their own capital in the transaction. Lend investors finance the project alongside the operators, who remain financially exposed until the assets are sold.

Key Points of the Deal

• Conversion of an existing property into 20 new residential units.
• Approximately 806 m² of rentable space, with an average apartment size of 40 m², a popular segment.
• Dual exit strategy: sell as a single portfolio or sell individual units, to optimize market conditions.
• Additional income generated by a telecom tower on the roof, producing €9,000 to €15,000 in annual revenue.
• Part of the building is temporarily occupied by Orange, enabling phased asset management until full vacancy.

Pre-Commercialization Phase

Marketing activities will start in the first few months after the acquisition to quickly attract future buyers. The sales strategy involves contacting multiple investor types (institutional investors, real estate companies, landlords, and private investors) at the same time, while still allowing the option to sell units individually if that increases the overall profitability of the project.

This approach offers significant flexibility and reduces the risk associated with exiting the project.

Guarantees and Alignment of Interests

Investors' interests are directly aligned with those of the operators. Lend and JSF Holding are investing nearly €400,000 of their own capital in the project, demonstrating their financial commitment and confidence in the venture.

The asset has several characteristics that enhance its intrinsic value: recurring revenue from the telecom tower on the roof, temporary use of part of the building by Orange, and a real estate asset in a dynamic city with strong residential demand.

In addition, the SCI acquiring the property also owns a second real estate asset located in Somain (59490), on Rue Faidherbe, consisting of a building of approximately 400 m² on a 952 m² lot, acquired for €250,000. This additional asset strengthens the SCI's financial stability for the transaction.

Unit Breakdown