Joffe & Associés advises REDMAN on its capital raising with Omnes Capital

Read the CF News article here.

 

Joffe & Associés advises Redman on its capital raise with Omnes Capital. Founded in 2007 by Matthias Navarro and Nicolas Ponson, the Redman property group announced on Monday 23 January 2023 that it had secured its first round of funding from Omnes. This initial funding round totalled over 20 million euros.

 

The B Corp certification: a key selling point

Having opened up its share capital to its employees in 2020 to the tune of around 10 per cent, Redman took a further step in its shareholder structure at the end of last year. The French property developer, which specialises in low-carbon urban regeneration and redevelopment projects, has opened up to Omnes, a fund specialising in private equity and infrastructure that is committed to ESG principles.

 

Launched last summer, Redman’s capital increase attracted several French and foreign investment funds, which were particularly drawn to one key selling point: the property developer, a mission-driven company, holds B Corp certification. It is even “the only one in France” to have obtained such certification. The company’s business model – which goes beyond that of a simple property developer – cannot be reduced to a simple EBITDA multiple. Throughout this process, the parties instead based their calculations on discounted cash flow (DCF), given that property restructuring accounts for nearly half of its business.

 

A joint venture launched to acquire value-add assets

 

The group’s intention is clear: Redman’s majority shareholders, co-founders Mathias Navarro and Nicolas Ponson, sought to partner with a minority shareholder to accelerate their plans to decarbonise existing buildings. A shareholder who is also focused on the city of the future, low-carbon operations and ESG.

Like Redman, the private equity fund – which also focuses on infrastructure – is working to reinvent and rebuild the city from within. Its first fund, CEP 1 – also focused on the top end of the balance sheet – has made around ten investments, totalling 300,000 square metres, including Geophoros with Bouygues Immobilier, a €100 million fund targeting property assets valued between €5 million and €15 million. In the same vein, Redman and Omnes have decided to double this capital increase by setting up a vehicle to acquire existing value-add, or even opportunistic, assets, with the alignment of interests kept confidential. Redman sources the transactions through its already identified pipeline. Omnes provides equity financing, supplemented by leverage.

Through this joint venture, they aim to transform assets even if they have not yet obtained the necessary regulatory approvals, given that Redman already possesses expertise in setting up development funds designed to hold assets requiring restructuring.

 

Asset acquisition: a priority target

 

The joint venture’s focus is on existing buildings, where all or part of the structure can be retained, as well as brownfield sites requiring more extensive urban regeneration. This is a risky strategy involving significant construction costs, given that these have risen due to inflation and the upheavals of recent years (the health crisis, the war in Ukraine, the energy crisis, etc.).

 

According to market data, this rise in construction costs ranges from +15% to +30% for high-end projects. It is worth noting that between 2020 and 2021, the cost of constructing an office building in Paris was estimated at between €3,000 and €4,000 per square metre. The fund hopes to make its first investments by the end of the first half of the year or during the second half, in the Île-de-France region, as well as in major French cities; Redman has a presence in the south-east, with an office in Aix, whilst also expanding into western France.

 

€100 million in turnover in 2023 and a doubling of that figure within three years

 

As the only French property developer to hold ‘BCorp’ certification, and having generated nearly 90 million in turnover in 2022, Redman will exceed 100 million euros in turnover in 2023 and, thanks to this fundraising, will be able to exceed 200 million euros within the next three years. Among other things, this transaction will enable the group to step up its expansion across the whole of France. A new milestone for the development

 

Redman now operates throughout France, with offices in Paris, Lyon, Bordeaux, Aix-en-Provence and Montpellier, employing nearly 70 staff in property development and over 170 across the group as a whole. For the past seven years, it has also been active in Africa, in Dakar, where it develops bioclimatic and bio-based buildings, operating across three business lines: property development in the commercial, residential and hospitality sectors (as an investor and operator in the hotel industry).

 

“We are delighted to be formalising such a partnership with a specialist and committed player like Omnes. We had already opened up the group’s share capital to employees in 2020; this new step marks a turning point in Redman’s history,” says Matthias Navarro.

 

 

 


Investor: OMNES CAPITAL (ENR & BATIMENT DURABLE) , Gonzague de Trémiolles

Redman’s lawyers: JOFFE & ASSOCIES, Aymeric Dégremont, Charlotte Viandaz

Omnes’ lawyers: JEANTET, Philippe Raybaud, Thibault Willaume, Warda Zekraoui

Financial VDD: NEW DEAL FACTORY (NDF), Florence Valentin, Benjamin Piquet, Thomas Feneon

Redman M&A Advisory : CLEARWATER INTERNATIONAL

 

J&A advises SOCADIF Capital Investissement on a growth capital transaction

Retrouvez l’intégralité de l’article de Socadif ici.

 

ARJ is a Créteil-based group specialising in services for businesses (SMEs and small-to-medium-sized industrial firms). It operates mainly in the Île-de-France region through three subsidiaries, each specialising in their respective fields. The group has completed a strategic acquisition by taking over the Delta Group from its managing director.

 

Founded in 1994 and acquired in 2015 by Morgan Djorno, the ARJ Group offers a range of services centred on four main areas of expertise: IT outsourcing, telephony, electronic document management and printing systems.

 

Taken over in 2015, the ARJ Group consolidated its position with the acquisition of COPIE DEP and COPYFAX (in 2018 and 2019 respectively) and the creation of a subsidiary specialising in telephony, causing its turnover to surge from €1 million in 2016 to €8 million in 2021.

 

The acquisition of Delta and its Bordeaux-based subsidiary So Technologies will enable the ARJ Group to consolidate its presence in the Île-de-France region, expand its activities in the Nouvelle-Aquitaine region, and further strengthen its expertise in the field of IT outsourcing. The Group thus formed will exceed €17 million in turnover, a significant portion of which is recurring. The CEO, advised by Alienor Partners, intends to pursue a policy of selective, value-creating external growth to become a prominent player in services for SMEs and mid-market companies in the Île-de-France region.

 

This acquisition was financed by an equity injection from SOCADIF Capital Investissement, supplemented by bank debt provided by CIC, Crédit Agricole Ile-de-France (CADIF) and BPI France.

 

Morgan DJORNO, CEO of the ARJ Group, explains:

“The synergies, both personal and professional, with Samya Glangetas and Emmanuel David quickly became apparent to me. I am looking forward to embarking on this venture with my new partners. The acquisition of Groupe Delta provides us with an opportunity, through diversification, to expand our offering horizontally to our clients and prospects whilst upholding our values and maintaining our high standards in terms of environmental responsibility.”

 

“We were particularly impressed by the enthusiasm and professionalism of Morgan Djorno, who, in just a few years, has managed to increase his turnover eightfold by diversifying his range of services. The acquisition of Groupe Delta enables him to incorporate new, forward-looking skills and expand his sphere of influence. We are delighted to be able to support the Group’s development, both in terms of organic growth and external expansion.”


Parties involved in the transaction:

GROUPE ARJ : Morgan JORNO
SOCADIF CAPITAL INVESTISSEMENT : Samya GLANGETAS, Emmanuel DAVID

 

INVESTMENT BANK:
ALIENOR PARTNERS: Ludovic RICHARD
INVESTOR’S SOLICITORS AND LEGAL DUE DILIGENCE:
JOFFE & ASSOCIES : Virginie BELLE, Mathilde VASSEUR

 

COMPANY LAWYER:
DUROC PARTNERS : Erwan BORDET, Faustine PAOLUZZO

 

FINANCIAL AUDIT:
MAZARS : Isabelle TRISTAN, Cyprien BENOIT

 

LENDERS:
CIC : David BENAROCH, Philippe GIBON
CADIF : Mickael LEVISTRE, Alma NOURBAKHT
BPI France : Alexandre VASSEUR, Mathieu GABIN, Souleymane NDIAYE

 

Joffe & Associés appoints Fanny Cebrian as General Secretary

In 2023, Joffe & Associés appoints Fanny Cebrian as secretary general of its support services.

Holder of a Master in Management from NEOMA Business School, Fanny first had a commercial career, specializing for 10 years, in document management for law firms.

 

In 2018, Fanny Cebrian co-founded the consulting firm Legacy, dedicated to supporting liberal professionals in the management of their general services. From 2020, she joins Joffe & Associés as office manager to consolidate and develop the structure in order to support growth and carry its development projects.

Fanny Cebrian took up her position as secretary general on January 1st, 2023.