Paris, September 14th, 2020
Natixis, Socfim and SCOR Investment Partners support LBO France in its partnership with Colonies, a French leader in coliving
Just before the lockdown, LBO France had signed an exclusive partnership with Colonies, one of the main coliving players. LBO France will invest up to €150m to finance the acquisition of a hundred of houses over the next two to three years. These houses will be restructured and renovated, and Colonies will operate them under long-term leases.
This new way of living, inspired by house-sharing, addresses the shortage of quality urban housing and increasing mobility. Under a coliving arrangement, each resident has a private furnished and equipped space (a room, studio or apartment) and access to common areas and appliances (dining room, kitchen, laundry room, fitness room, spa, or home cinema). Its all-inclusive formula includes access to many services (housekeeping, Wi-Fi, laundry, reception desk, etc.) and provides lots of flexibility on a market that lacks innovation. This offer is dedicated to young professionals, professionals on extended business trips, and temporary expatriates or, on a more one-off basis, people in professional or personal transition.
Confident in the potential of this expanding market that is rethinking the models of the residential sector, a banking pool including Natixis, Socfim and SCOR Investment Partners has granted LBO France a credit line with a 60% leverage. It will finance the purchase of houses and renovation costs. LBO France can draw down such credit line on a discretionary basis as acquisitions are made. Twenty houses are already in the pipe in the Paris region, Lille, Marseille and Bordeaux.
“We are very pleased to be granted once again the confidence and full support of our banking partners and SCOR Investment Partners in this operation. They adjusted their financing by offering a tailored solution for this atypical operation and have been highly reactive despite the lockdown”, said Stéphanie Casciola, Head of Real Estate at LBO France.
Thierry Bernard, Head of Real Estate and Hospitality Finance Europe, said: “We are happy to support LBO France in this new asset class, which should expand tremendously over the coming years. Financing has been tailored to LBO France’s needs, particularly in quickly acquiring a significant portfolio of promising houses.”
Sandrine Amsili, Head of Real-Estate Debt at SCOR Investment Partners, said: “As a player in specialised real-estate financing in the value-added segment, we are proud to take part in this innovative venture. Given its positioning and real estate and financial features, this deal meets our lending standards. Moreover, in helping facilitate access to quality housing, it includes a societal dimension that reflects our desire, as an asset manager, to finance sustainable projects.”