French Investments: France Residence has come to the Irish market again with a €14 million leaseback development in the Landes region of southwest France. It is in the small seaside resort of Moliets Plage, best known for its golf course, just 80 kms due north of Biarritz.
Options on properties in the scheme are being offered at a discount to people who invested in a previous project by the same company a little further north along the Atlantic coast at Mimizan. It had to be abandoned two years ago because of planning difficulties. Investors all got their money back.
French leasebacks have long lost their novelty value, but, apart from the intrinsic attractions of the country, it is worth remembering the market there has witnessed consistent growth recently. Prices have actually risen faster than in Ireland in the past three years. But as they started from a lower base, French properties remain much cheaper than comparable Irish developments. As such, they offer opportunities for the cautious investor.
There are 92 apartments being built at Moliets ranging from 35sq m (376sq ft) one-bedroom units at €118,000 to 45sq m (484sq ft) two-bed units at €150,000 and 57sq m (614sq ft) three-bed duplexes from €185,000 to €205,000.
Besides its golf course, Moliets is best known for miles of unspoilt beaches. The development adjoins the golf course and is within 200 metres of both the town and the beach.
The leaseback is for 11 years and the return is between 4.5 per cent and five per cent, depending on the size and location of the apartment. There is two weeks free usage outside the peak holiday season for owners.
France Residence is unusual among companies selling French property here in that it is not only bonded and licensed in both countries, but has moved into development as well.
The Moliets project is being built in conjunction with a Bordeaux-based construction company that has been involved in three other projects with France Residence. The growth of the company has been phenomenal and 40 per cent of its business now comes from French, UK and Scandinavian investors.
However, Finbarr Callaly, one of the directors, admits it has not all been plain sailing. The entire Mimizan project sold out on the first day of the launch but local politics bedevilled the planning process. As completion dates disappeared over the horizon France Residence decided to withdraw.
Following the planning problems they faced before, this time around France Residence worked closely with the local municipality, even helping twin Moliets with Dublin - and they waited for all the planning hurdles to be cleared before marketing the development.
Moliets is in easy driving distance of Bordeaux (120 kms), as well as Biarritz. Bordeaux has scheduled Aer Lingus and Air France flights while Ryanair services Biarritz.
• The launch of the development is in the Westbury Hotel, Dublin, tomorrow and Saturday, on April 21st and 22nd.
