Jean - Louis Loeb - Picard
A 45 year success story in real estate
JL Loeb-Picard : A 45 year success story in real estate
At the age of 24, whilst still a student, he acquired his first building, comprising ten apartments, in Paris. He convinced "Societe Generale" to finance the operation. The year is 1974.
The following deal (acting as an intermediary in the sale of two prestigious buildings next to the Champs-Elysees), which arose thanks to a casual encounter at an embassy reception, brought in a huge commission and cash-flow for the young entrepreneur and his company.
Several acquisitions of historical buildings in Paris, bought with the intention of a quick resale and gain were to follow. The real estate market in Paris was trending upwards and the profits were more than healthy.
That was an invitation to reflect on a strategy for the future: how to stay in the business as a major player and how to expand. The outcome of this reflection was to adopt new principles for the future: either to build from scratch or to refurbish properties in upcoming areas substantially, and renting these properties over the longer term.
In France, the most attractive tenant is represented in the government and its agencies, which together represent a very large player in the rental market. The government is also a major shareholder in many public companies which participate as long-term renters.
These new buildings were predominantly occupied by the government at competitive rates, however, despite the rates; there was a guarantee of a very successful relationship, with long-term rents paid on time.
In financial terms, these rental-buildings, comprised of a total of 5 million square feet, could be considered and evaluated like long-term government-bonds.
Some of these building were sold after 25 years of ownership, bringing the company a cash flow of severally hundred million Euros; cash which is today ready to be reinvested.
The objectives for the near future are to diversify more and more geographically: the UK, USA and Canada are on top of the list with a priority of acquiring landmark buildings in prime locations, which easy to manage and with few tenants.
Target value per building: 20-100 million Euros.
A few figures, spanning 45 years:
Five million square feet built by Jean-Louis Loeb-Picard.
The average area developed for each building constructed is c. 250,000 square feet (including 200 to 300 parking spaces).
The average value of each building is c. 100 million US Dollars.
The majority of these buildings have been leased or sold to the French Government (including the Ministry of National Education, Ministry of the Interior and the Army) or to companies owned in whole or in part by the French Government (Orange, French Post, AFP, etc.).
The remainder were leased to some of the largest French and foreign listed companies such as L’Oréal, Habitat, FNAC, ITT, Alcatel-Lucent, Lufthansa, Thales, Allianz, Generali, Havas, etc.