MIMCO Green Value

A growing French market for logistics and the refurbishment of obsolete assets

Since the creation of online retail and marketplaces in particular, logistics has become a strategic element in the success of online sales

The health crisis has redefined consumption patterns, exacerbating pre-existing trends and accelerating the transformation of physical retail and distribution.

Furthermore, lifestyles have also been impacted with, in particular: a change in the needs of office users (flexibility, common spaces and services, etc.) and an evolution of housing. The latter must offer more comfort and outdoor spaces.

The new consumption habits adopted during lockdowns are likely to become more permanent.

The microcosm that connects physical retail, marketplaces and warehouses – the players capable of articulating the supply-chain of a 360-degree shop – are structuring themselves and are already planning for the next stage, in which their logistics real estate occupies a prominent place.

The MIMCO Green-Value fund has been awarded the SRI (Socially Responsible Investment) label for sustainable and responsible investments.Label ISR

It is also categorized under Art. 8 of the SFDR* regulation.

*Sustainable Finance Disclosure Regulation

A market with strong demand

Covid has strengthened the strategic nature of logistics real estate.

The demand for warehouses is directly correlated with the continued growth of online retail, which has demonstrated the relevance of its business model during the health crisis, and by the government’s strategy of reindustrialisation of the country by 2030.

Key features

2nd
 Eurozone economy in 2020 (All Europe)
2nd
 Logistics market in Europe in 2020 (Supply Chain Info)
€25B
 Volume of real estate investments in France in 2021 (Cushman & Wakefield)
+24%
 Increase in take-up in logistics in 2021 compared to the ten-year average (CBRE)

€4,9B

 Volume of investments in logistics real estate in 2021
4,5%
 Vacancy rate for logistics real estate in France in 2021 (CBRE)
AA
 France's rating in 2021 (Fitch Ratings and Standard & Poor's)

Investment policy

The main objective of the GREEN Value fund is to invest directly or indirectly in real estate and operating assets with the aim of achieving two complete cycles of acquisition, construction and resale of the properties over the course of its life.

The real estate assets will be located in France, and will primarily be comprised of logistics assets (warehouses, cross-docking, data centres, business parks) and more generally obsolete assets and/or assets in need of refurbishment.

We select obsolete real estate assets which are discounted, such as vacant or occupied buildings, land, warehouses or industrial wasteland, and aim to refurbish and/or transform them and/or change their use and/or resell them.

The Company reserves the right to invest in other classes of real estate assets which may also be located in other EU Member States, up to a maximum of 30% of the total amount of the commitments.

Target operations

Property to be developed / refurbished

Transformation / Change of use and/or resale

Value Added assets with strong value creation potential

Obsolete real estate assets which are discounted

Target asset category

Logistics

Data centre

Warehouse

Cross-docking

Business parks

Specifications
Structuring
Asset value
Risks
Documents
Management company
MIMCO Asset Management S.A.S. (MIMCO AM) AMF approval n° GP-21000018
Issuer

MIMCO Green Value

Legal structure
Simplified joint stock company with variable capital
Domicile and jurisdiction of the fund
France
Target size of commitments
The Management Company targets a total amount of Commitments of €40.000.000,00
Launch date
08/03/2022
Closing date for subscriptions
31/03/2024
Subscription price
The higher of (i) the nominal value plus the issue premium and (ii) the net asset value following subscription, plus any equalisation premium (see Information Document)
Share class - ISIN code

Class S – FR0014007XK0

Class A – FR0014007XL8

Class I – FR0014007XJ2

Lock-up period
12 months
Distribution target

In-fine

Minimum subscription

S – €250.000

A – €250.000

I – €5.000.000

Effective date
Effective date + 90 days
Depository Bank / Registrar
ODDO BHF France
Auditor
Grant Thornton France
Subscription fees
0%
Early redemption fee
6% after 12 months then decreasing gradually to 1% after 36 months (see Information Document)
Management fee

A and S shares: 0.60% of the fund’s Gross Asset Value

I shares: 0.20% of the fund’s Gross Asset Value

Outperformance target

S shares: outperformance of 80% of the IRR portion exceeding the 7% threshold

A shares: outperformance of 70% of the IRR portion exceeding the 7% threshold

I shares: outperformance of 80% of the IRR portion exceeding the 7% threshold

Eligible investors

By reference to Article L. 214-144 of the CMF, a fund reserved exclusively for professional and professional-like investors in France, meeting the conditions of Article 423-27 of the AMF General Regulations, i.e. those likely to invest at least €100,000.

 

Tax framework

The tax implications depend on the individual situation of each client. It may be subject to change in the future. Investors are therefore advised to consult their own legal, tax and financial advisors with regard to the regulatory, tax, domiciliary and accounting considerations applicable to them.

 

Capital gains for individual investors:

  • Dividends received from the Fund: flat tax applying to capital gains (30%);
  • Capital gains on the sale of Fund shares: flat tax applying to capital gains (30%).

Capital gains of legal entity investors:

  • Corporate tax rate at 25% subject to holding < 5% and / or less than 2 years.
  • Parent-subsidiary regime: 5% of dividends subject to corporation tax provided that the company is held > or = 5% and for more than 2 years.

Tax on real estate wealth:

In view of the Fund’s business operations, investors holding (directly or indirectly with other members of their tax household for tax on real estate wealth purposes) less than 10% of the Fund and the SPVs will not be subject to tax on real estate wealth on the value of the Fund shares.

 

Investment Eligible for Article 150-0 B TER.

SAS

Société par actions simplifiée à capital variable
Head office : 87 Boulevard Haussmann – 75008 Paris

The AIFM management company

MIMCO ASSET MANAGEMENT
AMF approval n° GP-21000018
Authorised under the AIFM directive
RCS Paris : 898 003 124
Head office : 87 Boulevard Haussmann – 75008 Paris
Phone : +33 1 44 70 04 36
E-mail : partners@mimco-am.com

Depository Bank / Registrar

Oddo BHF SCA
12 Boulevard de la Madeleine - 75009 Paris
Phone : +33 1 44 51 85 00

The auditor

Grant Thornton France
29 rue du Pont - 92200 Neuilly-Sur Seine
Phone : +33 1 41 25 85 85

Class action S Class action A Class action A’
30/03/2022 €948.09
30/06/2022 €996.90 €996.90 €996.90
30/09/2022 €982.14 €982.14 €982.14
31/12/2022 €970.80 €970.80 €970.80
31/03/2023 €971.33 €971.33 €971.33
30/06/2023 €965,73 €965,73 €965,73
Capital loss risks

The Company does not offer any guarantees of capital protection and therefore the Net Asset Value may be lower than the Subscription Price. Investors are warned that their capital is not guaranteed and may not be returned or may only be partially returned, even if they hold their Shares for the full recommended investment period. Shareholders should not invest in the Company if they are unable to bear the financial consequences of such a loss.
Discretionary management risks

The Management Company will manage the Company on a discretionary basis in accordance with the conditions set out in the Articles of Association and in compliance with this Information Document, and in particular with the investment strategy. In any case, the Management Company must act in accordance with the Company's corporate interest and the common interest of the Shareholders. The discretionary management method is based on the Management Company's assessment of the qualities of complex investments, on the selection of specific real estate assets and on the anticipation of real estate market trends. However, there is a risk that this assessment may be contradicted by the performance of the investments and that the Company may not always be invested in the best performing markets or properties. The Net Asset Value of the Company may be adversely affected. Similarly, the Company's performance may be below the management objective.
Real estate risks

The investments made by the Company will be subject to the risks inherent in the holding and management of Real Estate Assets, and in particular those relating to the possibility of resale of the Real Estate Assets and the risks of depreciation of the Real Estate Assets: all these risks are likely to result in a decrease in the Net Asset Value. The value of the Real Estate Assets held by the Company is linked to the evolution of the real estate markets. As such, the performance and the evolution of the invested capital are exposed to the risk linked to the evolution of this asset class. A large number of factors (generally related to the economy or more specifically to the real estate market) may have a negative impact on the value of the Real Estate Assets held by the Company and consequently on its Net Asset Value. No guarantees can therefore be given as to the performance of the Real Estate Assets held by the Company.
Liquidity risks

The attention of Authorized Investors is drawn to the fact that their investment in the Company is not liquid. Indeed, the Company is subject to a liquidity risk through its majority exposure to Real Estate Assets whose resale time is dependent on the status of the real estate markets.
Specific risk related to development operations

The Company may also engage in or be indirectly exposed to development transactions (real estate development contracts, forward-funding sales, delegated project management contracts) which may expose it to the following risks (i) risks related to construction as project owner; (ii) risks of default by the developer, project manager, general contractors and all trades; and (iii) risks of deferred collection in time from the completion of the construction of the building and its letting. The Company will therefore directly or indirectly bear the letting risks normally associated with such assets.
Risks related to leveraged debt

The Company, directly or indirectly through the Target Companies, may have recourse to debt to finance its investments, under the conditions indicated above. Under these conditions, fluctuations in the real estate market may significantly reduce the capacity to repay the debt. The use of debt enables the Company to make property investments for amounts greater than those raised and to increase the return on equity. On the other hand, fluctuations in the credit market can also reduce the sources of financing and significantly increase the cost of this financing. The use of debt exposes the Company mainly to the risk of an unfavourable change in interest rates in the event of a variable-rate loan being taken out, and to the risks associated with a general increase in rates. The use of leverage, while increasing the Company's investment capacity, also constitutes a risk that losses are amplified compared to an unleveraged investment and may therefore result in a decrease in the Company's Net Asset Value.
Risks related to the commitment of forward financial instruments

The use of financial futures instruments will enable the Company to partially or fully hedge its exposure to interest rate and currency risk but may also give rise to a counterparty risk in the event of default by its co-contractor and thus entail a risk of a more significant and rapid decline in the Net Asset Value than that of the assets in which the Company is invested. Furthermore, these financial futures instruments are valued at their market value at least quarterly. It is possible that the market value may be negative and negatively affect the Net Asset Value.
Interest rate risks

A risk related to the change in interest rates may be involved in some investments. Interest rate risk is the risk of depreciation of interest rate instruments (long and/or short-term and fixed and/or variable) resulting from changes in interest rates. For example, the price of a fixed-rate bond tends to fall if interest rates rise.
Foreign exchange risk

The Company is intended to invest primarily in the Euro zone. It may invest in instruments not denominated in Euros. Currency risk is the risk of capital loss when an investment is denominated in a currency other than the Euro and the currency depreciates on the foreign exchange market.
Risks related to the valuation of target companies

The Net Asset Value of the Company's Shares may not reflect the exact value of its portfolio since the valuation methods used depend, in part, on the figures provided by the Target Companies which the Management Company will not always be able to verify. There is no guarantee that the final proceeds from the sale of an investment will reflect the valuation made in the regular valuations made available to the Partners.
Sustainability risk

The SFDR regulation governs transparency requirements relating to the integration of sustainability risks into investment decisions, the consideration of negative sustainability impacts and the disclosure of ESG information, as well as the publication of sustainability-related information. Sustainability risks can have an impact on long-term risk-adjusted returns for investors.
Risk inherent in the absence of historical accounts of the company

As the Company was recently registered, it does not have historical accounts. It has not made any investments to date and is therefore unable to commit itself to forecast figures and its ability to generate results. The Partners rely exclusively on the judgement and efforts of the Management Company, which will control and manage the overall operations, investments and strategy of the Company. Before subscribing, the subscriber must ensure that their profile, financial situation and objectives are appropriate for the product and consult the Information Document. This document is available from MIMCO AM, 87 Boulevard Haussmann 75008 Paris.

The value of investments in MIMCO Green Value shares is inherently subject to change, both upwards and downwards, depending on MIMCO Green Value's investment objectives or strategies and on economic and market conditions. Investment in MIMCO Green Value may involve a risk of capital loss. Given the economic and market risks, no guarantee can be given that MIMCO Green Value will achieve its investment objectives.
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