Introduction
We’ve been scouting for a discounted French leaseback deal for the last six months. These are as prized as they are rare, because the French local investment market is so strong and finance so readily available that developers have no need to discount to sell. But we persevered.
It was an old acquaintance from Jonty’s short career in France as a goat-herder (don’t ask) who finally led us to this deal. And what a deal it is. Word of a Parisian, Best Western-branded apart-hotel with a 14% discount, a guaranteed 5.09% net rental yield, VAT cashback, excellent leveraging and low entry deposits saw us embarking on the very next Eurostar to Paris.
Meeting the developer, we immediately snapped up 55 of the 120 units for you – from under the very nose of a French competitor – and negotiated hard to secure a limited-time price 14% below their list prices. To further exasperate our competitor, we even brokered five days per annum free usage for the first three years you own the unit, ideal for families wanting a place to stay for free when travelling to Disneyland Paris or to the heart of the capital.
For the uninitiated, the beauty of a discounted leaseback is that it boosts your rental yield and ensures you have something competitive to offer when selling into the local market. This sort of packaging underwrites your exit strategy. You won’t find a much better location either. Ten minutes from Disneyland Paris and just 35 minutes from the city centre, the four-star world-renowned Best Western Marne la Vallée is in the suburb of Bussy Saint-Georges. The area is a dynamic and expanding business hub which supports the continued growth of the region and ensures your investment has only one way to go – up.
Your investment is more secure too. French leasebacks are the government treasury bonds of the property world – safer long-term investments, with limited downside. The advantage of property over bonds however, is that you can leverage property. In the investment time-frame, you’ll have had a steady guaranteed income, as well as ending up with a mortgage-free asset, worth many times your original investment. It is impossible to do the same in the bond market, unless you’re a risk-taking hedge fund manager.
This is why leasebacks are so beloved by French investors, who buy three or four at a time, to balance out their portfolios and safeguard their retirement plans as well as tax breaks. As these are commercial properties, they can be put into your SIPPs also (please consult your financial advisor regarding this)
So, sensing a renewed vigour and confidence in the French economy, thanks to the election of economic reformer Nicolas Sarkozy, we say: “Vive la France!”
Read on to find out how you can get all the VAT back and exit capital-gains free.
Best wishes,
Jonty and Alise Crossick
Location
Just ten minutes from Disneyland Paris and a half-hour train ride from central Paris, the town of Bussy Saint-Georges is built in a traditional French style combined with a sophisticated modernity; it is upmarket, clean and beautifully green. This is a fast-growing and high-demand area. Nestled between a lake and a park, the Best Western Marne la Vallée is right in the heart of things – just a two-minute walk from the train station and the town centre’s shopping and dining amenities.
The area is easily accessible. Bussy Saint-Georges is very easy to get to from the UK, with the regular Eurostar services from Ashford, Kent and London Waterloo (St Pancras from November 2007 onwards) to both Paris Gare du Nord and Disneyland Paris nearby6 taking just 21/2 hours. All major airlines, including easyJet and British Airways, serve the northern Paris airport Charles de Gaulle, while Air France also serves Paris Orly, which is even nearer to our apart-hotel.
Rapid expansion
Bussy Saint-Georges is relatively new, but has proved immensely popular. In fact, its population has grown from a mere 500 in 1985 to a staggering 17,000 in 2007, and is forecast to grow further. During our recent trip there, we saw several new developments and sensed ongoing growth. Many notable businesses have been keen to set up in the area – there are various industrial parks with Nestlé, IBM, Sony, AXA Insurance, BT France, Siemens and Fuji Graphics among the many firms with a local foothold.
This of course increases the demand for business accommodation. With the flexible length of stay, clients are likely to prefer to reside in Best Western Marne la Vallée apart-hotel, where they can stay for a night, a month or even a year, depending on their individual demands. Just two minutes away are various shops, a supermarket and even a bike shop - so the needs of everyone, from locals to businesspeople to holidaymakers, are well catered for.
Aside from the business community, with Disneyland Paris and the heart of the city just a short train ride away, the very reasonable rates our apart-hotel offers undoubtedly also draws demand from tourists, and especially families.
Growing number of multinationals relocating into the area eurostar.com.