CPI II
2023 - 2030
Investment Fund CPI II
2023 - 2030
The CPI II investment fund will be created in 2023/2024, and is currently in investor sign-up phase.
When the fund is fully subscribed by 4-6 investors and fully financed (10m€), approximately 5-6 apartments will be acquired and renovated and put into operations (seasonal rental).
Exit and liquidation of this fund is planned for 2029-2030 and the expected ROI is 10%-15% before taxes.
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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