We were approached by two clients who were operating a business from a site that consisted of a church, residential & boarding facilities, educational facilities and various external recreational spaces, in generally poor condition. The was property in excess of 82,000 sq ft of buildings on a 5-hectare plot.
As the clients were essentially sitting tenants and the overseas owners needed to sell, the purchase price was heavily discounted on the £8m valuation. The sale was by way of the borrowers buying the existing Jersey registered company.
Despite the opportunity to acquire the assets cheaply, the borrowers didn’t have much cash to put into the loan and hadn’t been able to find funding for the acquisition. The purchase included a large area of land that wasn’t really being used and was included in the Local Authority Housing Plan for development.
Using this, Enness brought in a specialist offshore fund that funded 100% of the purchase price in return for an equity stake in just the development land and taking a share of the profits once planning was in place.
Due to the nature of the buildings, the client couldn’t find anyone to insure the £14.5m reinstatement value. Enness were able to bring a specially negotiated Lloyds of London package to the table in order to complete the purchase just in time.
France is one of the most popular property markets for foreign nationals: we are all aware of the chic appeal of Paris, the enduring allure of the Riviera in the summer or the freshness of the mountains in winter.
Covering everything from search and negotiation to making an offer and the legal processes, the guide will help you fulfil your dream of property ownership in France.