Sofiparc is the real estate part of the group founded in 1989, which had revenues from rents of EUR 7.2 MM in 2012.
Sofiparc’s main asset is a 13,000 sqm buil
ding in Levallois, a commune 6 km away from the citycentre and close to La Défense business district. This building is 80% rented by CompagniePlastic Omnium.The company also owns 30,000 sqm of land in Lyon and Saint-Priest, 6000 of which are leasedto a real estate fund operating two hotels (an Ibis and a Novotel) in Lyon and 6,000 sqm to
a car washing company in Saint-Priest. The other 18,000 sqm in Saint-Priestare empty.The simplified balance sheet for Sofiparc looks like this:Thousands of euros
GoodwillIntangible assetsTangible assets
StocksReceivables and related accounts
Customer financing receivables * (C)Current accounts and other financial assets(D)
Financial hedging instruments (E)Net cash * (A).
TOTAL ASSETS 123,762
Loans and financial liabilities (B)
70,588The carrying value for the building and the land in Lyon is EUR 76.9 MM, which I think issomewhat undervalued taking into account that the EUR 7.2 MM made in rental income wouldmake for a rental yield of 9.4%. I believe that it is quite a high yield, especially having a largepart of the land unoccupied (18,000 sqm).In order to have another layer of safety I will take the book value of
EUR 70.6 MM.
2.3 Burelle participations
It’s a small private equity firm which invests in French companies. It has a reported NAV of
which will take as face value.2.4 Estimated intrinsic valueThe total value of the three legs comes at
EUR 1,140.6 MM
compared to a market cap of just
EUR 588.43 MM
potential upside to NAV of 94%.
Burelle doesn’t have
at theparent level.