COMMUNICATED. Housing crisis: a historic agreement between Altémed and the Federation of Occitanie real estate developers

A new agreement has been signed. UNSPLASH ILLUSTRATION. -Scott Webb

To realize the supply shock launched two years ago and the production of housing for all, Michaël Delafosse, mayor and president of Montpellier Méditerranée métropole asked Altémed to find immediate solutions to respond to the crisis.

In this sense, an agreement was signed this Friday, May 24, 2024 between Altémed and the Federation of Occitanie Real Estate Developers (FPI).

The countercyclical role of Altémed in the housing crisis

In a particularly uncertain context, Altémed worked with the FPI to unblock real estate operations currently blocked: "To date, nearly 3 000 homes are blocked. We work with the FPI, lot by lot, developer by developer, to study the conditions for exiting the operations, by using all the levers including the land charge, the architectural specifications, the construction costs…&quot ;, explains Cédric Grail.

This desire to support the construction of housing in the years to come is part of the public policies carried out by Montpellier Méditerranée Métropole and constitutes a significant financial effort for the developer. Also, after several months of discussions, an agreement was reached on a profit-sharing clause so that these efforts could be erased in the event of a downturn in the economic situation.

The objective: the production of housing for all. Altémed thus has the ambition of: accelerate the release of the 7,600 housing units allocated over the past two years. In this context of crisis, this system is a first in France between a private actor and a public actor, which marks a turning point in the relationship between the developer and the promoters.

A clause to unlock housing construction

The fundamental principle of the agreement is that the Altemed public group is making financial efforts to enable operations to begin today, and must cope tomorrow if market conditions deteriorate. improve.

Speed ​​up construction

In the context of the current real estate crisis and to successfully implement the supply shock launched by In February 2022, the developer Altemed and the promoters had to take action. rework current projects to secure their release.

This work entails à numerous modifications having financial impacts on development operations. At the same time, Altemed continues to award
batches to operators despite the fact that an uncertain context which is pushing land prices down.

This willé to support the construction of housing in the years to Coming is part of the public policies led by Montpellier M&editerranée Métropole and constitutes a significant financial effort for the public sector.

In the event of a change in economic conditions In the medium term, these efforts made today could lead to a significant improvement in promoter balance sheets. In order to preserve the general interest, Altemed wished to that a system be introduced allowing the rearrangement of the financial conditions of transfers to the outcome of the operation.

After discussions with the Fédération of real estate developers Occitanie Méditerraneanée (FPI), an agreement was reached found on an interest clause. These exchanges made it possible to define the conditions for a sustainable configuration of operations and the clause.

Thus, the clause provides that in the event of additional margin or turnover from the operation to delivery compared to today, this additional result or shared between promoter and developer as were the initial efforts and risks.

This evolving clause is built according to the program and the risk carried by the operator and can reach up to 50% of the additional margin for risk-free operations (block sales), 40% of additional turnover for risky housing operations and 30% for the tertiary sector.

The entirety of these funds will be re-injected into the development operations of the metropolis to continue the dynamic set in motion by the supply shock.