“For the development of OWN, this is the logical next step,” emphasised Nicolas Jacquet, co-founder and managing Partner. “The context is changing and the market is shrinking. It was therefore essential for us to be able to respond as best as possible to this new situation.
OWN Capital is presented as a new offer which will evolve in parallel with the various services offered by OWN. From now on, we acquire the properties directly, develop them, and manage them. And the OWN team is not new to this. “For some time now, we have been directly involved in various projects where there is a real potential for development,” retorts James Goffin, also co-founder and managing partner. “However, we didn’t know how to do everything and had to miss certain opportunities every now and then”.
“With OWN Capital, we can now be more responsive to the various offers that are offered to us”.
It must be said that the two partners already have a lot of real estate experience. Both have been active in the sector for more than ten years, and both have gained a great deal of experience in various important groups on the Belgian market. One of them started out with the investment company GH Group, while the other started out with the developer JCX (Blaton family), and then initiated the innovative concept of property hunters in Belgium by creating and developing the company “Property Hunter”. These two careers allow them to present profiles that are as different as they are complementary.
The real strength of OWN Capital is that it can rely on the skills of “OWN Services”, which is made up of the same shareholders. As a reminder, OWN Services is a multidisciplinary consultancy firm in which real estate brokers, architects and asset managers collaborate to respond to all the constraints linked to property investment. “Thanks to the various expertises we have in-house, we can deal with all the stages that assets go through directly.
This is a considerable advantage that differentiates us from other market players who have to subcontract most of the functions required to complete the investment”. Highlights Nicolas Jacquet. And James Goffin adds: “Thanks to this synergy, we can acquire the various property at the right price, because in the current context, the margin is mainly in the control of the works”. From then on, the “Find” team, consisting of brokers, focuses on finding opportunities, the “Improve” team, consisting of architects and project managers, focuses on the structural optimisation of the properties acquired, and finally the “Manage” team, consisting of asset managers, focuses on the assets management.
The very essence of OWN Capital is to involve private and privileged investors in all the projects initiated, in terms of the capital contribution needed to feed the equity requirements.
James Goffin states “Henceforth, it is no longer possible to get 150% financing from your bank for a project. The reality of yesterday is no longer that of today. And although interest rates are at their lowest, access to credit is becoming increasingly complex”. “To overcome this obstacle, we have adopted an efficient and stable distribution between bank debt issued by our financial partner on the one hand, and so-called “junior” debt issued by our consortium of investors on the other hand, and of which we are an integral part in order to take a share of the risk”. Completes Nicolas Jacquet. And although the distribution key varies according to OWN Capital’s needs at any given moment, it is most often between 75% bank debt, and 25% junior debt.
OWN Capital is currently focused on two main areas.
The first is real estate development operations with well-defined criteria, namely :
The second is heritage development with equally determined criteria, namely :
OWN Capital was founded in March this year and the two shareholders have already raised nearly 1 million euros in the first round of financing. In addition, OWN Capital has already positioned itself for an investment volume of around 6 million euros in assets, and projects a margin of almost 30% after development.
But they do not intend to stop there.
In addition to this, Nicolas Jacquet and James Goffin are actively considering the possibility of being able to create a full-fledged development entity, enabling them to carry out all the various current and, above all, future projects. Because with a view to overall control, it will be necessary to definitively cover this aspect of investment property.
More info to come…