Investor pitch social housing real estate - frédéric bachelier - evaluated
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Investor pitch social housing real estate - frédéric bachelier - evaluated
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Investor pitch social housing real estate - frédéric bachelier - evaluated
- 2. In France: 4 million people live in poor housing condition 14,000 families were expelled in 2015
- 3. Provide decent housing to a larger segment of population, with low revenue or warranties Provide investors with a meaningful social & solidarity investment support, with a fair ROI and a fair level of security on a steadily growing market (demand increase faster than social housing supply)
- 4. 50% of the population are eligible to social housing 20% of the housings are held by public institutions (HLM) → There are lots of leftovers, so there is an opportunity for private investors to provide social housing
- 5. 37%: €557 million 24% 21% 14% 4% Social companies financing Environmental loans Social loans Solidarity financing towards developing countries Social real estate investments → There is a market for social real estate investments and it is raising +30% between 2014 and 2015 1 million French solidarity savers Solidarity Financing: €1,49 billion
- 6. Housing stock: 14 housings acquired since 1999 with bank loans Figures over 18 years of activity, i.e. 850 monthly rent receipts: • Average contract duration = 2 years • Average sales / tenant = €15,000 • Rate of Occupancy = 90% • Default Payment Rate = 18% • Net ROI (*) = 4,5% (*) before tax on revenue Frédéric Bachelier 18 years experience as landlord
- 7. Housing stock: 14 housings representing a part-time activity ~1/4 FTE Housing stock: 40 housings, in order to reach a Full Time Equivalent → €1,300,000 needed
Editor's Notes
- Questions: Who are the enablers? You already own 14 housings? It must take you a lot of time? Feedback: Slides not sexy Problem very clear Guarantee Confident Clear market explanation Investor slide : too much information Clarity Good conclusion slide (scaling) Grade from the evaluation group : 15/20 Feedback from Stéphanie Le Beuze: Visuals are not very good Clarity and straight to the point on the references (net ROI) and the conclusion slide - Ideas for slides improvement: More illustrations, less figures, only essential ones, use charts, use animations (picture from multiple activties from Alexis Roche)
- Problems: PP# Pain Points P1 Very difficult to find housing as well in private sector (because of weak social condition, leading Real Estate agencies to refuse their applications) as in public sector (because of scarceness) The difficulties to find housing may lead these persons to : P2 * fraud and provide false documents leading to illegal situations P3 * sign contracts with illegal statements P4 * be in housing with contractors not compliant to their obligations about health and security P5 * go in hotels, at a higher cost and/or highest discomfort for families P6 * go in shelters, at a light cost but at a highest discomfort especially for families P7 * be without a permanent housing, leading to discomfort and precarity P8 * be hosted by friends or family, leading to discomfort for them and their hosts P9 * sleep in the streets
- 4
- Default payment rate is of most importance for investors, and many private landlords are afraid to deal with the issues. But statistics show this risk is limited and the larger the housing stock is the smoother is the risk
- Capital : Investments from BA, VC loans from banks Scale up in 3 years ROI for investors has to be defined, as I should sell my services in managing the properties and the tenants, as well as all the interlocutors