We’re launching our first project in France!

We’re thrilled to announce Urbanitae’s first project in France. We’re debuting in Europe’s largest market by volume, right next to Paris. The launch is scheduled for Thursday, October 17 at 4 p.m. (UTC+2). Below are all the details.

The Marjolin project focuses on an office building in Levallois-Perret, adjacent to Paris. Urbanitae investors will provide capital to acquire this property, which is currently nearly 90% leased, with the goal of optimizing occupancy to reach 100%. Once its potential value is maximized, the property will be sold within a maximum of three years – 36 months.

This office building, with a usable area of 4,779 square meters, was built in 1988 and fully renovated in 2014. It has six floors and 118 parking spaces spread across three underground levels – 11 of which are equipped with electric vehicle charging points. The building also includes an event space, a wellness area, a cafeteria, and storage space. Another key feature is its sustainable credentials: it is certified with the BBC Effinergie rénovation label for energy efficiency, ensuring energy savings and providing a competitive advantage for future resale. No additional work or administrative procedures are required for this building.

As for the surrounding area, it is a fully developed zone with both offices and residential buildings catering to a mid-to-high purchasing power. The neighborhood is surrounded by parks, supermarkets, schools, and restaurants. Since the 2000s, Levallois-Perret has undergone significant transformation, including the rehabilitation of the Seine riverbanks in 2006, attracting a population of approximately 65,000 residents in 2022, thanks to its proximity to Paris and high-quality infrastructure.

The manager of this opportunity is Babylone – Hadès, a reputable real estate operator with extensive experience in France, particularly in Paris. Since its inception, Babylone – Hadès has completed around 30 investment operations, focusing on property investment strategies and value-add projects, including changes in usage or rehabilitation of historic buildings.

Capital gain strategy

The Marjolin project follows a capital gain strategy, involving a partnership with the operator to acquire the building with the aim of achieving full occupancy and renegotiating leases to optimize the project.

Urbanitae investors will contribute €2,510,000 – €10,000 of which will be kept within the holding company to cover administrative and management expenses. The operator will be responsible for the full management of the operation and will also invest its own capital, representing 23% of the total investment value.

The building currently has four formalized tenants; part of the vacant space is secured with a new tenant, leaving only half of one floor unoccupied, with several interested parties already. Once the property’s value is maximized, it will be sold within a maximum of three years. The operator plans to initiate the sale once the building is fully leased.

The sales promise was signed in early 2024, and the acquisition is scheduled for October 2024. €2,000,000 of the purchase price has already been disbursed. The purchase will be finalized by the end of October with the entry of the operator’s investors, alongside the bank. Additionally, the operator has reached an agreement with a leading financial institution to finance the project.

Another important aspect is that since the property is already nearly 90% leased, it will generate cash flow from the start of the project.

In this video, we explain the key points of the Marjolin project.