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THE TROUBLED REAL ESTATE MARKET

“The real estate market is suffering”, warns Henry Buzy-Cazaux, founding president of the Institut du Management des Services Immobiliers (IMSI), in Capital on 17 April: over the last twelve months, purchases of new and old housing have fallen by 30% , just like construction, which is supposed to increase and renew the stock.

This scenario is a serious threat to employment in the sector, which is the first in the economy with two million direct and indirect jobs, and also to public revenue, of which real estate is one of the main forms of resources. With the needs of households not being satisfied, this creates a social risk and a brake on their mobility.

Prices are not falling, but the signing of sales agreements fell by 25% in the first quarter at Orpi, one of the main networks of real estate agencies in the country, a warning sign of things to come. Demand is shrinking, mortgages are becoming more expensive: for the first time since 2014, the average interest rate has exceeded 3%.  

Apart from the more stringent loan conditions, real estate is subject to an accumulation of constraints linked to the fight against global warming and which are becoming truly suffocating. The “DPE” (Energy Performance Diagnosis) prevents the rental of badly classified apartments (G+ since 1 January, G in 2025, F in 2028, etc.), and many owners do not want to carry out the work and prefer to sell at a loss.

 From 1 April, the sale of a dwelling rated F or G must be accompanied by an “Energy Audit” detailing the work to be carried out in order to improve its insulation. For a detached house, this work can be estimated between 40,000 and 60,000 euros, i.e. 30 to 40% of its value in areas where there is no imbalance between supply and demand for rental housing!

Rental real estate, which attracts investment and contributes to renewing and increasing the existing, sees its yields drop: economic context (increasing interest rates), weight of taxes (property tax), ecological standards. Especially since rents are not in line with acquisition prices and charges because they are regulated (and some cities even block them).

Is social housing a solution? The new PLU (Local Urban Plan) of the city of Paris sets the objective of 40% social housing by 2035, in particular by requiring owners of private housing or office buildings “to add social housing in the event of restructuring. A prospect that provoked an outcry among both investors and property developers”. (Les Echos, 11 April). This could discourage private capital from investing…

Between high taxation, restrictive and costly energy regulations, regulated rents and social housing, this context is not very favourable to private real estate. 

Sources : Rexecode, Banque Delubac & Cie, Refinitiv, Turkstat, INDEC, Central Administration for Statistics, INSEE

Reinvest your contribution-transfer thanks to the expertise of a private bank

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Discover our new offer: Reinvest your contribution-transfer thanks to the expertise of a private bank

  • A 150-0 B Ter offer built with you
  • We rigorously select the best solutions on the market to diversify your reuse.
  • We complete our offer by analysing investment theses on request to build the portfolio that best suits you.
  • Beyond these investments, your private banker works over time to optimise the overall management of your assets.

>> Find the new offer of Delubac Private Banking 

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Our branches and offices will be exceptionally closed in 2023 on the dates listed in the table below.

The interbank settlement systems will also be closed on certain dates. Please note that our teams will be handling transactions when the TARGET2 and SEPA settlement systems are open.

Please anticipate your transactions.

exceptional closures 2023

**CBK = Correspondent Banking

Banque Delubac & Cie supports the shareholders of C2S Conseil Chimie Service, a major player in air quality analysis in France, in the sale of their company to the ISPIRA Group.

The ISPIRA Group, a specialist in air quality and environmental health, has acquired C2S, a major reference in air quality analysis in France.

This acquisition enables the ISPIRA Group to:

  • strengthen its know-how in all areas of air quality;
  • expand its customer base;
  • complete its offer on the regulatory side concerning Public Receiving Institutions and the analysis of polluted sites and soils; and
  • provide an analysis service based on a large network of partner laboratories.

Based in Aix-en-Provence and Paris, C2S consists of approximately 20 employees to work with recognised public and private players. It also has COFRAC accreditations allowing it to position itself on the analysis of indoor air quality (LABREF30) and electromagnetic fields.

Thanks to this operation, the ISPIRA Group brings together more than 50 employees spread over 5 locations in France (Paris/Clichy, Lyon, Aix-en-Provence, Nantes and Toulouse) as well as in Belgium (Arlon and Brussels). The Group’s consolidated turnover exceeds €6 million.

As part of this operation Banque Delubac & Cie successfully advised and supported the shareholders of C2S in the sale of their company, from the search for potential buyers, both in France and in Europe, to the final negotiations. 

Delubac CIB Operation Dedicated Team: 

>> Consult the press release of 11/23/2022

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The Delubac Group is pleased to announce the appointment of Benoît Vesco as President of the portfolio management subsidiary Delubac Asset Management.

His appointment is part of a strategy to create a new dynamic within our asset management company.

His human and professional qualities are such as to embody the fundamental values of the Delubac Group promoted by Maurice Delubac, its creator: independence, proximity, expertise and trust.

>> Consult the press release of 11/30/2022 

Delubac Corporate & Investment Bank supported and advised BforCure in this fundraising with several medical diagnostic family offices.

BforCure, a company specialising in bio-detection, raises 8.2 million euros to strengthen its production capacities and diversify its range of PCR tests in less than 15 minutes 

Created in 2018, BforCure, a company that develops and markets an ultra-fast PCR health diagnostic platform, announces new fundraising of 8.2 million euros. The growing company aims to strengthen its production capacity to meet market demand and to accelerate its R&D projects. It intends to develop and soon launch a dozen new delocalised PCR tests for detecting infectious diseases in less than 15 minutes and as close as possible to healthcare professionals and patients. 

A Healthtech that relies on local production

Since 2018, BforCure has continued to develop and has now become “THE” healthtech startup specialising in the rapid biodetection of pathogens responsible for infectious diseases using proprietary and patented technologies.

After raising 2 million euros from ID Solutions in September 2021, BforCure is now raising 5 million euros from several medical diagnostic family offices and has obtained 3.2 million euros from the Ministry of Higher Education, Research and Innovation, as part of the Health Innovation 2030 Plan.

Thanks to this, the company wishes to strengthen its production capacities for its Chronos automaton and its PCR test kits (spaces, new production lines, automation) to meet the growing demand of its clients and the in vitro diagnostics market, in France and internationally. Its objective is to multiply the rate of production of its solutions by five to meet emerging needs.

From the beginning of its history, the company chose to internalise in France the R&D and the production of its Chronos platform (hardware and software) and its PCR test kits. This desire also encourages the maximum use of French partners and suppliers. This approach is part of the desire to control all stages of product design and production, to control the entire value chain, to ensure the high quality standards inherent in health products, to be as close as possible to the ecosystem (universities, engineering schools, research laboratories, health establishments, etc.).

“This operation will enable BforCure to finance the strengthening of its production resources to meet the growing demand from healthcare professionals who wish to carry out infectious diagnostic tests simply and very quickly, delivering accurate results, at a cost accessible to the greatest number of people and allowing them to be relocated as close as possible to the places where patients are cared for. In addition, we must position our post-Covid solution, by expanding its range of tests”, continues Mael Le Berre, Co-Founder of BforCure.

BforCure, diversifies its offer of biological diagnostic tests

Since its creation in 2018, BforCure has invested more than 10 million euros in R&D to develop innovative molecular diagnostic solutions based on proprietary technologies to quickly detect and prevent biological risks and reduce their health, economic and environmental impacts.

Last September, the company launched,  in France and abroad, the first version of its Chronos DX platform, a mobile and connected solution allowing PCR diagnostic tests including Covid-19 to be carried out in less than 15 minutes, intended for medical biology laboratories, hospitals, residential homes for the elderly, emergency medical services, firefighters, airports, congress halls, cultural centres, etc. Since its release, nearly 50,000 PCR tests have been performed with the Chronos DX platform.

In the coming months, and as soon as it has obtained the CE IVD markings, BforCure plans to market around ten new infectious diagnostic tests as close as possible to the place of care for patients (point-of-care) to detect: 

  • SARS-CoV-2 variants,
  • sexually transmitted infections,
  • respiratory diseases,
  • gastroenterology,
  • papillomavirus,
  • antibiotic resistance.

 By the end of 2022, BforCure aims to:

  • strengthen the production of its solutions to meet the needs of its clients and the market,
  • pursue the development of its offer on the infectious diagnostics markets,
  • reach a workforce of 120 employees to support its growth.

As part of this transaction, Banque Delubac & Cie – CIB acted as advisor to BforCure.

About BforCure

Created in January 2018, BforCure is a French company employing 70 people based in Montreuil (93). It designs and develops infectious diagnostic solutions for the medical, veterinary, defence and industrial sectors. It is recognised today for its Chronos solution: operational, mobile, modular and connected, enabling the detection of a pathogenic microorganism in 15 minutes.

More information on: https://www.bforcure.com/fr/accueil/

About Banque Delubac & Cie

Created in 1924, Banque Delubac & Cie is an independent financial institution offering specialised banking and financial services. With over 200 employees, it is present in Paris, Lyon, Toulouse, Valence and Le Cheylard (historic head office, located in Ardèche).

Its Corporate & Investment Bank department has been developing for 10 years advisory services for mergers and acquisitions, engineering and financial operations for listed and unlisted companies.

>> Read this article/press release in PDF

Banque Delubac & Cie accompanied and advised Bonyf NV, a specialist in oral care, for its listing on Euronext Access Paris.

Banque Delubac & Cie accompanied and advised Bonyf NV, a specialist in oral care, for its listing on Euronext Access Paris.

Bonyf NV (Euronext Access Paris: MLBON) is a Belgian company specialising in the research, development, production and distribution of oral products. Its range consists of 15 products in the field of dental, oral, orthodontic and wound care. They are produced in the Bonyf factory in Switzerland in accordance with strict international regulations to ensure consistent product quality. 

Innovation is at the heart of bonyf‘s offer through a wide range of patented products (7 active patents and 3 additional patents pending), spanning 20 years of in-house research and development carried out in bonyf Liechtenstein. bonyf products are marketed in 36 countries by pharmaceutical companies, pharmacy and parapharmacy chains and dental product retailers.

The transaction was completed following the admission to trading, on 17 March 2022, of 588,600 shares making up the company’s share capital, at a price of 12 euros per share.

This transaction will allow bonyf NV to develop its notoriety and increase the visibility of its brands/products.

Jean-Pierre Bogaert, CEO and founder states: “The listing of bonyf NV shares on Euronext Access® Paris is an important step in the development of the company. Our listing will strengthen our notoriety and facilitate our access to new clients, especially internationally. They will appreciate that bonyf adopts the best practices in the sector and offers quality corporate and financial information. Our presence in a market adapted to the size of our company will give us the flexibility necessary to pursue and accelerate our growth projects. After more than 20 years of R&D innovation and quality certification, bonyf is now at a major strategic turning point in its history. We are confident that we will be able to reap the benefits of our investments in the coming years and thanks to the stock market, we are expanding our future fundraising opportunities.”

Banque Delubac & Cie acted as advisor for this transaction.

About Bonyf

Founded in 1979, bonyf specialises in the development, production and marketing of oral care products. Bonyf‘s innovation strategy enables it to improve the quality of life of people suffering from oral diseases. The company has an R&D centre in Liechtenstein in the “Dental Valley”, a production plant in Switzerland and distributes its product lines in 36 countries throughout the world. Benefiting from 7 patents protecting formulations and products developed in-house, the company anticipates a strong development of its activity in the coming months driven by an oral-dental care market in sustained growth.

About Banque Delubac & Cie 

Created in 1924, Banque Delubac & Cie is an independent financial institution offering specialised banking and financial services. With 280 employees, it is present on several regional sites across France.

Its Corporate & Investment Bank department has been developing for 10 years advisory services for mergers and acquisitions, engineering and financial operations for listed and unlisted companies.

>> Read this article/press release in PDF 

Banque Delubac & Cie opens new regional offices

Listening to our customers and doing everything we can to serve them is how we see our business.

Because our clients have asked us to get closer to them, we have opened new regional representative offices.

Our experts are now present in all regions of France. The activities present in the regions are essentially those of Restructuring Banking, the Corporate Banking and Delubac Factor. These offices already exist in Paris, Lyon, Toulouse, Valence and Le Cheylard.

les agences dc en france

>> Consult the press release of 02/02/2022

Delubac Asset Management is a signatory of the PRI (Principles for Responsible Investment) supported by the United Nations

Delubac Asset Management, a subsidiary of Banque Delubac & Cie, has become a signatory to the United Nations Principles for Responsible Investment.

So, we have joined the international network of institutional investors committed to incorporating environmental, social and governance considerations into investment decisions and active shareholding.

=> + news Delubac Asset Management : https://www.delubac-am.fr/

=> + news PRI : https://www.unpri.org/

Banque Delubac & Cie supported the company Advanced Biological Laboratories SA in carrying out a simplified public tender offer for the shares of Etablissements Fauvet-Girel

On 15 October 2021, ADVANCED BIOLOGICAL LABORATORIES SA (“ABL SA”) acquired 96.70% of the capital of ETABLISSEMENTS FAUVET GIREL (“EFG”), a “shell company” listed on Euronext Paris compartment C. ABL SA has carried out this transaction with the aim of developing new activities in the field of infectious disease genotyping diagnostic within EFG.

In accordance with the applicable regulations, ABL SA announced on 15 October 2021 its intention to proceed with the filing of a draft public tender offer without a squeeze-out.

The simplified public tender offer (the “Offer”) for ETABLISSEMENTS FAUVET-GIREL shares, initiated on 23 December 2021 by ADVANCED BIOLOGICAL LABORATORIES SA, closed on 7 January 2022. On the occasion of this Offer, ABL SA acquired 954 shares representing 0.38% of the capital and 0.38% of the voting rights of EFG. At the closing of the offer, ABL SA holds 243,481 EFG shares representing the equal number of voting rights, i.e. 97.08% of the capital and voting rights of this company.

Banque Delubac & Cie acted as presenting bank for the offer alongside Atout Capital, transaction adviser.

>> Consultez le communiqué de presse du 20/01/2022 

Real estate in France has been experiencing a rise in prices since the early 2000s. The Covid pandemic, with the fall in GDP that followed the confinements, has not reversed this trend. In Europe, despite the specificities of each market, prices are also rising to a greater or lesser extent, even in Germany, which had long been spared.

The fundamental cause is the expansionary policy of the European Central Bank (ECB): the quantity of money is increasing more rapidly than the volume of goods and services available, consequently prices rise. Not mechanically of course, because at the same time the speed of the circulation of money is falling (during the Covid, savings have increased, money is “frozen”), which mitigates the progression of prices. But in recent months, we have experienced unprecedented levels of money creation..

The balance sheet of the ECB has increased by more than 3,000 billion euros since the start of the Covid crisis, from 5,000 to more than 8,000 billion euros. It is literally money created ‘out of nothing’, by a paper exercise, in order to subscribe to the loans issued by the States facing the gigantic deficits caused by the pandemic. There had been so-called “money printing” before, during the subprime crisis of 2008, then during the Greek debt crisis in 2011, but the current period far exceeds them both. The ECB’s balance sheet total is equivalent to 81% of Eurozone GDP, compared to 37% for the Fed, 41% for the Bank of England. Only the Bank of Japan has more (134%), but the debt is entirely held internally, which changes the situation. The vertiginous rise we are witnessing is not about to stop as the budget deficits in France and in the countries of southern Europe remain high and are slowly being reduced.

It is very likely that monetary policy in the eurozone will remain expansionary in the years to come, for several reasons:

– the sustainability of public debts must be ensured, a rise in rates would strangle several countries and push them into default;

– it is necessary to allow the financing of the energy transition, which is very costly. Moreover several countries, including France, are beginning to issue “green bonds” for this purpose;

– the current rise in inflation is considered by the ECB to be transitory, and therefore does not call for a change in direction.

These low rates which, with the return of inflation, bring negative real interest rates, will cause an increase in the prices of real estate, stocks, cryptocurrencies and real assets in general (gold, works of art, vintage cars). Indeed, these assets cannot be “printed”, Picasso paintings or Ferrari Daytonas are no longer produced, and gold or real estate increase very little from year to year, so they constitute safe havens to preserve purchasing power over time. Stocks and Bitcoin are volatile and put many investors off, the art market is complex, so real estate is the investment choice for most savers and for many investors.

As a result, housing prices will continue on this rising trend and, except for those who already have significant assets, this is not good news, for several reasons: 

  • it makes access to housing difficult for young people and the middle classes;
  • wealth inequalities will increase, generating a feeling of injustice and protests;
  • such a rise runs the risk of a financial crisis if real estate prices ever drop.

In addition, the energy transition generates heavy constraints: “Technically, the bans on renting ‘energy strainers’ could remove 3 million housing units from the rental stock, including 700,000 in 2025 alone!” according to Jean-Marc Torrollion, President  of the FNAIM (French Federation of Real Estate), with many owners recoiling from the cost of the work. And when supply is restricted, prices increase, in this case for rental, but energy saving standards will also make construction more expensive.

Commercial real estate will also be impacted: from 1 January 2022, landlords and occupants of surfaces of more than 1,000 m² will be forced to reduce their energy consumption on the basis of those of 2010 by -40 % by 2030 (i.e. in just 8 years), on the pretext that buildings represent 25% of greenhouse gas emissions in France.

 What are the means of action to slow down or stabilise property prices?

  • The ECB renouncing its expansionary monetary policy, but this scenario is not very credible, as default on sovereign debt constitutes too serious a risk;
  • Use the macroprudential regulation of banks (increase in capital requirements associated with mortgage loans) in order to restrict credit demand. The effect will be limited because the incentive to invest in real estate will remain strong (inflation will not be so transitory, as stated Jerome Powell, Chair of the US Federal Reserve);
  • Tax real estate capital gains more heavily, with the underlying idea, still very popular in France, of “making the rich pay”. This measure would nevertheless be costly in terms of votes, and have limited effect, as the remaining capital gains would in any case be a better option than letting your money lie dormant.

As we can see, there is no real solution to the excessive rise in real estate prices due to a durably expansionary monetary policy. We will have to deal with and accept the disadvantages of this situation: difficulty in accessing housing, increase in wealth inequalities, risk of financial crisis in the event of a market downturn. However, a market with rising prices is also an opportunity, of course, even if the level of risk increases. The housing market will become more difficult, but also more exciting!

The balance sheet of the ECB: https://twitter.com/Schuldensuehner/status/1463155482659540996

 “Technically, the bans on renting ‘energy strainers’ could remove 3 million housing units from the rental stock, including 700,000 in 2025 alone!”, according to Jean-Marc Torrollion, President of the FNAIM

https://www.capital.fr/immobilier/immobilier-la-hausse-des-prix-nest-pas-tenable-selon-le-president-de-la-fnaim-1421663

 From 1 January 2022, landlords and occupants of surfaces of more than 1,000 m² will be forced to reduce their energy consumption on the basis of those of 2010 by -40 % by 2030 (i.e. in just 8 years), -50 % by 2040 and -60% by 2019