RISKS
We see 3 main areas of risk:
1. Legislation
2. Terror & War
3. Health Crisis
1. Legislation
Risks
Several cities are proposing or adopting new legislation on emergency measures to combat rental speculation and to promote access to housing in areas under pressure.
Our Assesment
We assess the risk of Cannes introducing similar legislation as very small, as Cannes’ revenue depends on the revenue from both holiday – and especially congress participants, where the hotel capacity does not cover the demand alone, and that Cannes does not have the same sociological challenges as Paris. Cannes has <75,000 inhabitants and most of the residents of Cannes are relatively wealthy. There are no major universities, and there is not the same need for cheap rental accommodation for students as in Paris. However, we estimate that there will be interventions/regulations for entire properties where, in the purchase phase, one must transform use rights from e.g. liberalprofession to residential (and thereby rental) – this will probably be more difficult to obtain permission from the municipality for such a transformation, which is why we will not invest in this type of property
Disclaimer
Investment in real estate is associated with risk and this project does not guarantee a return on the capital invested. Before investing in Cannes Property Invest II, the investor should seek relevant assistance from an accountant and lawyer before finalnsignature of the investment agreement
2. Terror & War
Risk
The war in Ukraine can spread to neighbouring countries, leading to intervention from NATO allies. A war between Nato aliance countries and Russia, will surely have significant impact on this type of investment.
Our Assesment
The terrorist attack in Nice in 2016 was an « eye opener » for cities like Cannes, which on the one hand has many very wealthy holiday tourists, especially from the Middle East, and on the other hand has many large and very prestigious congresses, with the Film Festival as the major flagship. There is massive investment in preventive counter-terrorism in Cannes, including with the help of Israeli security experts, armed anti-terrorist police, roadblocks, video cameras, etc. It is inherently difficult to assess this risk element precisely, but we dare to say that Cannes as a whole, especially after the Nice terrorist attack, has got a very good grip on their anti-terrorism measures. The war in Ukraine is, unfortunately, unfolding on European soil, and tourists from both Ukraine and Russia are no longer in the market. We find it very difficult to assess the effect of the war on our market in Cannes, both in the short and long term. So far, we can only state that it has had no negative impact on our rental business in 2022.
Disclaimer
Investment in real estate is associated with risk and this project does not guarantee a return on the capital invested. Before investing in Cannes Property Invest II, the investor should seek relevant
3. Health Crisis
Risk
The Covid-19 health crisis initiated the closure of all rental busines for 2 years. Could a new outbrak of Covid, or similar viruses close don the rental business again?
Our Assesment
The Covid-19 health crisis has had a significant impact on rental levels worldwide, including Cannes in the period 2020 – 2021. It is our assessment that since the vaccine programmes have been fully rolled out, and the fact that both leisure tourists and business guests have returned strongly to Cannes. 2022 has thus been a record year for both rental and hotel operations. We expect the rental for 2023 to be at the level of +120% of 2019 (before Covid).
Disclaimer
Investment in real estate is associated with risk and this project does not guarantee a return on the capital invested. Before investing in Cannes Property Invest II, the investor should seek relevant assistance from an accountant and lawyer before final signature of the investment agreement
We start with a personal meeting as our approach is built on a common basis in your future investment
Maximize the potential return on your assets by partnering with us, benefiting from our expertise and strategic guidance
HIGH RETURNS
We can document that our properties, which offers a 5 year rental track record, will sell at significantly higher prices, when exiting the investment period.
We estimate min 20% higher than for similar properties without a rental history / track record
IN DEPTH KNOWLEDGE
We have a in-deept knowledge of the rentals market in Cannes.
We will therefore be able to select the investment objects with great accuracy in relation to the concept and profitability requirements