Pierre-Loïc Poirieux is at the head of the new Bordeaux office of Proximea. This company of five employees created in 2015 is specialized in real estate crowdfunding, the participatory financing of real estate projects or startups in the sector.
Proximea, which has €17 million in funded projects, was acquired last year by a competing platform: Baltis, which employs ten employees for €60 million of projects funded since 2019. Headed by Alexandre Toussaint, Baltis has itself been integrated into the Nantes-based group Magellim, which is also behind the new Impact Source fund. As a result, Proximea and Baltis are set to join forces and merge within the next two years.
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An average investment of €3,500
But for the time being, Proximea intends to develop its activity in the Bordeaux metropolis and then on the Landes and Basque coasts. The target of these companies registered as advisers in participative investments? “Promoters and property dealers looking for the equity required by banks to finance their projects. We bring between 30 and 60 % of these equity funds thanks to individuals who invest €3.500 on average with a very accessible entry ticket of €1.000,” summarized Alexandre Toussaint. The campaigns, which raise an average of €600,000, are often completed in just a few minutes and are very popular with a male clientele of executives in the Paris region in their 40s. “At the end of an operation, two-thirds reinvest in another program,” said Baltis. The projects financed are mainly residential (56%) and commercial (29%), but also offices, warehouses and logistics buildings.
And with the decline in new construction in Bordeaux and elsewhere, Proximea has found another source of growth: “We work a lot with property dealers who buy, renovate and resell properties. These projects are often simpler, shorter and less subject to the vagaries of raw materials,” notes Pierre-Loïc Poirieux. Proximea also offers to finance startups in the real estate world, such as Heero, which specializes in energy renovation advice for buildings and raised €1.4 million last year in less than three hours.
Proximea offers rates of return close to 10
Like the forty or so platforms active on the French market, Proximea and Baltis are offering returns approaching 10% in 2022 for investments lasting 14 to 18 months on average. This high return is a return on an investment that is illiquid until the project is completed and is exposed to a potential risk of default if the financed real estate transaction does not go ahead or is not sold. A default rate of less than 1% on the market and 0% for both Baltis and its Bordeaux-based competitor Koregraf. The latter, based in Lormont, financed 84 real estate projects in 2022, for a total amount of more than €70 million, and made more than €44 million in repayments.
In total, €1.23 billion were collected by the various platforms on the French market last year (+62% year-on-year) to finance 1,300 projects while €434 million were repaid (+36%) corresponding to 600 projects. All this for an average return of 9.8% over 21 months.
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First published in LA TRIBUNE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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