(AOF) – Foncière INEA has announced the success of its capital increase for a gross total amount of 107.3 million euros. It will allow the real estate group to finance its growth by financing new investments with a view to achieving the objective announced at the end of 2021, namely a portfolio worth 2 billion euros by the end of 2026. ” This capital increase is the largest in the history of the group”, underlined the CEO, Philippe Rosio.
The funds from the operation will therefore be allocated to new production, it being understood that the company has undrawn lines of financing allowing it to finance its pipeline of real estate operations under construction as of December 31, 2021. The company aims to maintain its LTV (Loan to Value) ratio, equivalent to its debt, below the 50% threshold.
The settlement-delivery as well as the admission to trading of the new shares on the regulated market of Euronext in Paris will take place on June 24, 2022.
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Chinese real estate still in turmoil
Real estate is essential for the growth of the world’s second largest economy. However, after the setbacks of the giants Evergrande and Fantasia, other smaller promoters are having difficulty repaying their debts. The giant Evergrande is strangled by an abyssal debt of around 260 billion euros. He is fighting to pay his bond interest on time and deliver his apartments, so as to avoid a bankruptcy that would shake the entire Chinese real estate sector. The OECD believes that the risks of a sharp slowdown in China have increased with the setbacks of Evergrande. A drop of 2 points per year in Chinese domestic demand over two years would reduce global growth by 0.4 points of GDP.