(AOF) – Nexity has announced the signing of an agreement to acquire a 55% stake in the capital of the Angelotti group, a regional specialist in property development and development in Occitanie, the balance of the shares remaining held by the current managers. The consolidated turnover amounts to more than 150 million euros in 2021, up 20% compared to 2020. Thanks to an active land development policy, it has a significant pipeline representing the equivalent of approximately 6 years of turnover, the backing of which by Nexity will facilitate the achievement.
In 2021, it made the equivalent of nearly 1,600 reservations (approximately 900 in development and 700 in promotion).
In parallel with this operation, the Angelotti group plans to acquire 55% of Moreau Investissement, a company owned by Yohann Moreau, associate and partner of the Angelotti group in numerous operations, particularly in the Pyrénées Orientales. The balance of the securities remains held by Mr. Yohann Moreau.
The completion of these two transactions is subject to the only condition precedent of authorization by the French Competition Authority and should be finalized in the third quarter of 2022.
Louis-Pierre Angelotti, Chairman of the Angelotti Group, Roch Angelotti, its Managing Director, and Yohann Moreau, Chairman of Moreau Invest, will retain their positions and support the Group’s development.
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Key points
– First integrated French property developer;
– Turnover of €4.6 billion refocused on residential development for 70% and businesses, for 12%, and diversified in administration services (18%);
– Integrated real estate operator business model, unique in France: low capital intensity, balance of activities between short, medium and long cycles, pooling of fixed costs at less than 10% of turnover / diversified in regeneration urban, services to individuals and businesses and managed residences, hence integrated promotion/services offers;
– Split capital, the main shareholders being Alain Dinin and the managers of Nexity (11.4% of the shares) acting in concert with Crédit Mutuel Arkéa (5.3%) and AG2RLa Mondiale (5%), ahead of Prédica (6.4 %) and employees (3.6%), Alain Dinin chairing the 14-member board of directors and Véronique Bédague as general manager;
– Solid financial position with net debt reduced to €598 million with leverage of 1.4, compared to €1.9 billion in equity and €1.8 billion in cash.
Challenges
– Customer-oriented 2020-23 strategic plan articulated between market networking, consolidation of competitive advantages and operational excellence with, as objectives, an operating margin of 7% from 2021 and at least 10% operating income internationally;
– 3-point innovation strategy: transformation of the “information systems” function to better exploit disruptive opportunities – transition to the public cloud, strategic agreements in outsourcing, information… / internally, innovation 360° support with provision of data on 1,600 real estate start-ups, Intrapreneurship within the Startup Studio and Nex’Idea ideation competition / participation in Smart building alliance, Paris&Co, Impulse Partners, Real Estech …, equity investments in start-ups, by FPCI or directly;
– Environmental strategy “Making a sustainable and responsible city”: 2030 objective of reducing the carbon footprint by 22%, vs. 2019, per m2 delivered / revegetation of all real estate development in 2023 / issuance of “green” loans;
– Visibility of the activity with a pipeline of €20.7 billion, ie 5 years of activity, and an order book of €6.6 billion.
Challenges
– Benefits of the partnership with AG2R La Mondiale in senior residences under the Domitys brand (French No. 1, present in Italy, Belgium and Mauritius) and in property development;
– Risks for the future operating margin of soaring land prices and longer delays in obtaining building permits, a brake on sales growth;
– Russia-Ukraine war: no direct impact but postponement of the Investor Day to the start of the 2022 academic year, due to macro-economic uncertainties;
– 2022 objectives: development centered on France, market share above 14% in housing, maintenance of the operating margin rate around 8%;
– 2021 dividend of €2.5.
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.