© DR – Virginia Jacquet and Fabrice Luzu, associates of the study DIXSEPT68, describe the notarial activity in the field of real estate.
Virginie Jacquet and Fabrice Luzu are associated to the study of notaries in paris DIXSEPT68. The first is at the head of the pole real estate, the second directs the pole heritage. Each in their specialty, trace the outline of the notarial activity in the field of real estate business.
Posters of Paris : For the notary, what are the actions to be carried out, the points of vigilance and boards to provide during the acquisition or the financing of a real estate business ?
Virginie Jacquet : That is for the investors, who manage a property portfolio and buy a performance via the acquisition of a leased property, or for the users, who purchase premises for their activities, the choice of the property is essential.
Traditional criteria of location and servicing of the property, it is necessary to add complementary elements to those of the dwelling, that are the quality of the tenant and the nature of the property and its attributes, including environmental.
The quality of the tenant is essential, as well as the nature and duration of the lease.
The tenant must ideally exert a stable activity for several years, meeting the criteria of respectability to use and can demonstrate that they are a result of exploitation, over the past three years, sufficiently positive to reassure the landlord in terms of the sustainability of its business and the payment of future maturities of the rent, which will be in any case guaranteed by the payment of a deposit or the furnishing of a bank guarantee.
Persons of public law or similar are very appreciated, as they do not risk the liquidation and generally occupy the premises for many years.
Strong of an experience of more than fifteen years in real estate law, Virginia Jacquet accompanies professionals at every stage of their operations.
His perfect knowledge of English and German enables him to intervene on behalf of institutional investors and funds of foreign investments in acquisitions or sales of real estate portfolios (offices, warehouses, hotels, shopping centers, tourist homes, or services), real estate financing, operations, outsourcing and property development.
Fabrice Luzu accompanies the last fifteen years, entrepreneurs and leaders of companies in the framework of the organization and the transmission of their heritage.
His experience, his double degree – economics (Dauphine – ESCP) and legal/tax – and his ability to listen allows him to analyze both the impacts of economic and financial legal and tax for transactions made by its customers.
A. P. : What is the current rate of return you hope for ?
V. J. : The IRR internal rate of return real estate investment is currently in the market for “premium”, a little less than 3% in Paris and almost 4 % in the dynamic cities of the region, such as Lyon.
The current lease shall be a lease subject to the status of commercial leases, if possible with a remaining period to run, it closes (without possibility for the renter to cancel the contract), as long as possible. Within six years of the lease farm remaining in the well is more difficult to fundable or in conditions degraded.
The state is also important. A building poorly maintained, not having been the object of works of renovation and no longer correspond to current needs of the occupants parking capacity to be insufficient, decoration veillotte, environmental quality is low, or even non-existent… will be many criteria that may decide the tenant to change the local.
“The quality of the tenant is essential, as well as the nature and duration of the lease. “Virginie Jacquet
A. P. : What is, in your eyes, the current state of the market ?
V. J. : The real estate market healthy and attractive, given the interest rate of financing is extremely low. We note that the banks starting to finance buildings in the white buildings without tenant provided that the investor is ready to fund at least 50 % of the purchase price in equity.
More the building is well-located and well-leased, the more the bank is willing to increase its participation in the acquisition. The notary will accompany his or her client at every stage of the purchase process and financing.
A. P. : What are the different steps of the intervention of the notary ?
V. J. : first of All, in the context of the acquisition, the notary will review all of the documentation relating to the building. He will appreciate the legal quality of the property and its occupant. Before drafting the contract of sale, it shall prepare a report of due diligence to enable the buyer to be fully informed at the time of forming its price.
In the framework of the financing of the acquisition, the notary will be responsible for the implementation of the loan and the formalization of the taking of guarantees requested by the bank, whether they are mortgage attached to the building or non safeguards attached to the owner, such as pledge of shares of the company, or to the income generated by the building.
A. P. : In the matter of transfer of assets of real estate business, what are the pitfalls to avoid for a business leader ?
Fabrice Luzu : For a company leader, holding its real estate operations is a decision of heritage strategic to take. The current low level of interest rates also invited to position themselves quickly. It’s a choice that you have to measure the consequences in time.
For example, the premises may be perfectly adapted to the time of the acquisition, but it will be quickly outdated if the company operates in a technological environment, to a large mutation, or too small, whether it is a start-up, high-growth…
Different patterns of legal and taxation exist to bring the real estate business :
– to develop a SCI to the IS or the IR and then rent the premises to the operating company.
– Buy accommodation directly with the operating company, the holding company or a subsidiary dedicated to the.
– Buy (when it is financially and fiscally possible) the usufruct of the premises for a period fixed by the operating company and at the same time the bare ownership by civil society to the IR, whose partners are either officers of the company or of the members of the family of the head of the company.
– Buy via a civil society and then dispose of the usufruct for a fixed term units of the operating company.
“In terms of investment, the low level of interest rates is an invitation to move rapidly. “Fabrice Luzu
A. P. : What is, according to you, the best option for a business leader ?
F. L. : We can see, the figures are variable and should be assessed and quantified, because the differences between these different strategies, both for the company and the head of the company, can be significant.
The choice will be made also in regard to the perspective of the transmission of the heritage. Thus a company can be transmitted with a tax rate of a maximum of 5 % skilfully using the Law Dutreil, while if no precautionary wealth is not taken, the commercial real estate business will be taxed at 45 %.
The differences are significant enough to consider its objectives and its ownership structure.
A. P. : today, What is your projects and those of DIXSEPT68 Notaries ?
F. L. : The two areas of jurisdiction of DIXSEPT68 Notaries are, on the one hand, the engineering heritage and the transmission of business and, on the other hand, real estate investors, institutional and communities. We want to build up a network of notary and we are very happy to create an office in Lyon, where there is an offer notarial great quality that we will complement our areas of intervention and specific methods of innovative working.
We want to speak to a customer expressing different needs and have taken the party to put us in a co-working space in the heart of the Part Dieu : Mama Works.