Report
Pierre-Yves Gauthier

A big bet on the Grand Paris development project

A big bet on the Grand Paris development project

INITIATION COV.

Foncière Paris Nord is a property company with a single property asset that benefits most from the giant redevelopment of Paris’s northern suburbs (Grand Paris development project).
This project, which encompasses more than 80 000 sqm of new housing, has yet to be financed but is situated close to the new circular metro system due to open by 2023. In addition, it is close to the hub of the Paris 2024 Olympic Games which acts as a catalyst for a speedy development.
The project value is such that it should warrant a recapitalisation of FPN whose current liquidity is entirely dependent on its first shareholder.
The FPN share must be regarded as a call option on the project. It is a risk proposition. The valuation is seen at €0.08/share, should the project go to completion and assuming the full exercise of existing warrants.
Underlying
Fonciere Paris Nord

Fonciere Paris Nord SA. Fonciere Paris Nord SA, formerly ADT SIIC SA, is a France-based investment company primarily engaged in the activities related to the acquisition and management of real estate. It has a portfolio of assets comprising various types of buildings, such as offices, commercial and residential buildings. The Company's real estate assets are located in Paris and the Paris suburbs, among others. As of December 31, 2011, the Company operated through subsidiaries, including Compagnie Financiere Fonciere et Immobiliere-CFFI, Maintreuil and Pamier. In June 2013, it sold its stake in Venus to FIPP.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

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Analysts
Pierre-Yves Gauthier

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