INVESTMENT FUNDS General Information
CPI FUNDS
Year established
Private equity raised
# Apartments acquired
Current phase
# Apartments sold
ROI
CPI I
2017
€ 10m
14
Exit
10
* %
CPI II
2023
€ 10m
€ 10m
Invester sign-up
n/a
n/a
How it works
CPI Management, hereinafter called “CPIM”is a French company, that creates investment funds, for theinvestors, with the objective toinvestt in real estate properties in Cannes, which will be renovated and rented out for seasonal rentals, until the properties are sold, typically after a 5-year period.
The lifecycle and different phases of the investment fund looks like this:
- Sign Up: Signing up investors
- Private Equity: allocate private equity, corresponding to 40% of total investment capital needed
- External financing: providing of external financing, corresponding to 60% of total investment capitalneeded
- Company creation: creationof a French company to acquire, run and manage the properties identified and agreed by the investors,
- Renovation:renovation of the acquired properties
- Operation:rental and property management.
- Exit:selling of acquired properties and dissolving the French company
1) Sign Up
Each fund created by CPIM is created for 5 investors.Investors are private people, who typically inject money into the fund from their respective holding companies.
2) Private Equity
Each investor invests 1m€into the fund.With 5 investors, the invested private equity for the fund represents 5m€. At this point in time, the investors have agreed to invest, but not yet transferred money to the fund.
3) External financing
With the private equity allocatedto the fund,external financing of 7,5m€ will be provided, providing a total investment capacity of the fund of10m€, to be invested inproperties in Cannesand their renovationprojects. The remaining 2,5m€ is capital for the creation and operation of “NewCo”.
4) Company creation-NewCo
At this point in time, where the financing has been secured, NewCo will be created. Each investor will have the shares, corresponding to his/hershare of the share capital. This company will be the legal owner of the acquired propertiesand will be responsible for the management of all assets.During this phase, investment objects will be researched, identified and presented to the investor group, by CPIM. Once the investors have agreed for the properties presented these propertieswillacquired.
With the properties acquiredour interior designers will begin the work ofcreatingthe design and renovation project. Typically, this processfrom design to finished renovated product will takes4months in total.
Once the apartment has been renovated, NewCo will sign an exclusive rental mandate agreement with QAUTIO, one of the leading rental agencies in Cannes. QAUTIO will be responsible for rental and property management, including financial reporting.
After 5 yearsof operation, NewCo will sign an exclusive sales mandate with QAUTIO, for the sale of the prope
Scandinavian Suite 1
• Originally 3 bedrooms, 2 bathrooms
• After our renovation: 4 bedrooms and 4 bathrooms en-suite
• Renovation in modern Scandinavian style
• Perfect location: 3 mins to beach
• 5 mins to Palais des festivals (convention centre)
• Living space 113 m2 – with 10m2 balcony
Adresse: 9, rue Etats Unis, Cannes
Scandinavian Suite 2
• Originally 3 bedrooms, 2 bathrooms
• After our renovation: 4 bedrooms and 4 bathrooms en-suite
• Renovation in modern Scandinavian style
• Perfect location: 1 min to beach
• 5 mins to Palais des festivals (convention centre)
• Living space 117 m2 – with 2 x 5 m2 balconies
Adresse: 21, rue Etats Unis, Cannes