IntermediateHousing

348,000 housing units under management,

including 86,000 units of intermediate housing

1 million people housed

Production figures for 2016:

10,500 units of housing delivered

Work began on 13,000 units of housing

7,000 units upgraded

e1.44 billion in net profit for 2016

e1.1 billion invested in 2016

Key figures

A subsidiary of Caisse des Dépôts, SNI Group is France’s leading landlord with a portfolio of some 348,000 units of housing spread throughout the country.The Group has a longstanding tradition as landlord to major public institutions such as the French ministries of Defence, the Interior and Justice and it has gradually diversified its customer base. SNI Group currently comprises 21 subsidiaries and entities.As a global real estate operator, SNI Group is active in all housing sectors: first-and second-level social housing, intermediate housing and affordable rented accommodation, social housing developments, sheltered housing and accommodation for students, young professionals and the elderly, affordable homes for low-income first-time buyers, etc.

As a key stakeholder in housing policy and urban regeneration strategy, SNI Group is able to leverage its extensive local and regional network close to employment pools and its familiarity with local development challenges to provide tailored solutions to local authorities.

SNI Group,

global real estate operator serving the public interest

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Close on:

Trusted partner,key stakeholder

Résidence Villapollonia, beside the rail station, Louvres (department 95)

Intermediate housing: a sustainable response to the needs of working people and local authorities Intermediate housing straddles a number of public policy focuses and provides a pragmatic solution to current challenges: boosting available housing for the middle classes, stimulating employment and the building sector, promoting social diversity and building the foundations for a more sustainable type of development.It caters to the specific requirements of households that are not eligible for social housing but cannot afford current prices in areas suffering from a housing shortage where rents have gone up sharply over the last few years.It consists of new housing located in urban areas close to employment pools that complies with the latest environmental standards. Rents are capped at between 10% and 15% below the market rate and in order to be eligible, households are subjected to a means test.

Helping to reinvigorate construction in FranceSNI Group has been mandated by central government to play an active role in the intermediate housebuilding programme. The Group’s drive to build affordable rented accommodation coupled with its financial clout, expertise and commitments, make it a logical partner of choice for local authorities and real estate developers.

35,000 units by 2020

Partnering the middle classesIntermediate housing provides middle-income working households with: an opportunity to remain in/move into the area in which they work; extra purchasing power: rents are 10% to 15% less than market rates, representing average monthly savings of 150 euros;

speedy access to housing: contrary to social housing, allocation is not decided by an administrative committee; applicants are simply means-tested (ca. 75% of French population eligible); new high-quality, energy-efficient housing with lower charges.

The missing link between social and private housing

Freeing up social housingProducing more intermediate housing also means offering social housing tenants who are subject to the extra solidarity-based rental payments the possibility of moving into a new type of housing, thus freeing up existing social housing.

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Encouraging social mixIntermediate housing projects are designed as part of broader housing schemes and each programme includes 25% of social housing and usually a specific number of units set aside for first-time buyers. These programmes therefore satisfy three objectives of local authorities:

providing housing solutions for middle-income families;

boosting the social housing offering; enabling households who wish to do so to become home-owners.

Developing access to home ownershipThe lessor may resell their property after a 10-15-year period, thus providing tenants with deferred, secure access to affordable housing.

Securing productionTo meet the goal of delivering 35,000 units of intermediate housing over the next five years, SNI Group has already committed to pre-booking building programmes with the 15 largest French property developers, thus securing the acquisition of 8,000 units of intermediate housing every year.

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Demanding excellent performanceIn choosing SNI Group for the investment, construction, management and upkeep of an intermediate housing portfolio, investors are relying on a trusted partner with renowned expertise.

A single investment divisionthat reports to SNI and its subsidiary, AMPERE Gestion

Fonds de Logement Intermédiaire In 2014, SNI Group teamed up with insurers and major institutional investors to create Fonds de Logements Intermédiaire (FLI), an entity specifically dedicated to building and managing intermediate housing and France’s biggest residential housing fund.In addition to SNI, the fund brings together 17 French investors, including major players from the insurance, life insurance, employee savings and pension funds, personal risk and mutual insurance sectors: ACM (Assurances du Crédit Mutuel), AEW on behalf of the Civil services supplementary pension scheme (ERAFP), AG2R, Allianz, Areva, Aviva France, BNP Paribas Cardif, CNP Assurances, EDF Invest, the French pension reserve fund (Fonds de réserve pour les retraites), Generali, MAIF, Groupe Malakoff Médéric, Natixis Assurances, Neuflize OBC, Predica and the Building and public works mutual insurance society (SMABTP).SNI manages both the funds and the buildings via its subsidiary, AMPERE Gestion, a fund management entity accredited by the French financial markets authority (Autorité des Marchés Financiers).

Government-backed fund This billion-euro fund to build 13,000 housing units over five years was set up by the French Ministry for Finance and Public Accounts which put out a call for tenders to select a fund management company. In June 2015, SNI and its subsidiary AMPERE Gestion were selected.The Fund has been vetted by the French financial markets authority and has been created in October 2015 as a French real estate investment fund (OPCI).

Investment capacity of e1.8 billion, including leverage Total production of 10,000 housing units

Investment capacity of e2.3 billion, including leverage Total production of 13,000 housing units

The three components of the intermediate housing stimulus plan

A fund involving private investors

Fonds de

Logement Intermédiaire (FLI)

10,000 units

Investment capacity of e6,3 billion

A stimulus plan to build 35,000 units of housing

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A public fund

backed by the French State

13,000 units

A single investment divisionthat reports to SNI and its subsidiary, AMPERE Gestion

SNI’s stimulus programme The third component of the plan consists of an investment programme managed directly by SNI. Beginning in January 2014, the Groupput out a call for tenders to real estate developers and local authorities. In order to finance the production of 12,000 units of intermediate housing.The Group’s shareholder, Caisse des Dépôts, is commited to increase SNI’s share capital by €900 million.

Investment capacity of e2.2 billion, including leverage Total production of 12,000 housing units

The three components of the intermediate housing stimulus plan

Investment capacity of e6,3 billion

To produce these 35,000 units of housing, SNI Group is looking at off-plan acquisitions from developers or the acquisition of undeveloped or developed sites.

A programme run directly

by SNI with the support of Caisse des Dépôts

12,000 units

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Résidence Les Dominos, Saint-Jacques-de-la-Lande (department 35)

Rents are capped by regulations based on location*. They are 10% to 15% less than market rates on average. (NB: the amounts set out in the table below are capped amounts. Rents may be set at a lower level in accordance with the local market).

Below-market rents

Example: a couple with one child renting a three-roomed 65 sq.m. dwelling in zone A bis would save between €150 and €200 a month, representing between €1,800 and €2,400 in extra purchasing power every year.

* Article 199 novovicies of the French tax code

Income eligibility criteria are higher than for social housing

Rent caps in sq.m. /zone under the Duflot-Pinel law

Zone A Bis Zone A Zone B1Zone B2

(subject to accreditation)

Gross rent €16.83 €12.50 €10.07 €8.75

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The 2014 Finance Act defines intermediate housing as new housing built after 1st January 2014 that complies with the latest environmental regulations, particularly energy saving standards. It is incorporated into programmes that feature specific standards of architectural quality, infrastructure, high-end amenities and social mix.

Focus on regulation

Composition of lessee household

Zone A Bis Zone A Zone B1 Zone B2

Single person € 37,126 € 37,126 € 30,260 € 27,234

Couple € 55,486 € 55,486 € 40,410 € 36,368

Single person or couple with one dependant person € 72,737 € 66,699 € 48,596 € 43,737

Single person or couple with two dependant persons € 86,843 € 79,893 € 58,666 € 52,800

Single person or couple with three dependant persons € 103,326 € 94,579 € 69,014 € 62,113

Single person or couple with four dependant persons € 116,268 € 106,431 € 77,778 € 70,000

Additional amount per extra dependent person over five dependants

+ € 12,954 + € 11,859 + € 8,677 + € 7,808

Income eligibility ceiling applicable to tenants for leases signed in 2017

Income eligibility criteria are assessed as of the date on which the lease is signed.

In practice, the areas actually concerned are Zone A bis (Paris and outskirts), Zone A (inner Paris suburbs, Côte d’Azur and areas along the Swiss border, Lyon, Marseille, Lille and Montpellier) and Zone B1 (other large regional cities).

Housing close to employment pools

New buildings with energy performance equal to or ahead of the European Directive 2010/31/UE requirements (<50 Kwh/sq.m.PE) and the future HPE (high energy performance) label.

Qualityl/Habitat & Environment certification, NF Logement label, providing guarantees of comfort in terms of acoustics, energy performance and accessibility.

Parquet, tiling, electric shutters, individualised metering, etc.: the new housing will have amenities comparable to those available in the best first-time buyer programmes.

They must also satisfy all the requirements of landlords interested in acquiring sustainable buildings.

Highly demanding architectural, technical and environmental standards

Property-owners’ cooperatives will be owned by institutional investors and managed in accordance with the highest standards and SNIs.

Professionalised property management

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Strong local roots Tailored support

Résidence Nativ, Bordeaux (department 33)

Résidence Quartz noir, Carrières-sous-Poissy (department 78)

SNI Île-de-France (Greater Paris region)

Director: Zahir Arroudj20 place des Vins de France75012 Paris – FranceTel.: +33 1 75 77 03 01

Nord-Est Regional Director: Philippe Blech

4 rue Saint-Charles – BP 9004657014 Metz cedex 1 – FranceTel.: +33 3 87 39 30 01

Bourgogne and Franche-Comté Regional Director: Dominique Chauvet

Le Katamaran – Parc Valmy41 avenue Françoise Giroud – BP 3042821004 Dijon – FranceTel.: +33 3 80 50 56 03

Rhône-Alpes and Auvergne Regional Director: Romain Royet

5 place Camille Georges – CS7019369285 Lyon cedex 02 – FranceTel.: +33 4 78 95 99 29

Provence-Alpes-Côte d’Azur (PACA) and Corsica

Regional Director: Pierre Fournon22 allée Ray Grassi – CS 2002313272 Marseille cedex 08 – FranceTel.: +33 4 91 23 69 01

Midi-Pyrénées and Languedoc-Roussillon Regional Director: Jacques Durand

2 place de la Légion d’Honneur – BP 3586531506 Toulouse cedex 05 – FranceTel.: +33 5 34 25 20 03

Aquitaine and Charente Regional Director: Jean-Baptiste Desanlis

3 rue Claudeville – CS 9024333525 Bruges cedex – FranceTel.: +33 5 56 99 91 73

Pays de Loire, Centre, Poitou and Limousin Regional Director: Bruno Bataille

1 rue des Sassafras – BP 9010544301 Nantes cedex 03 – FranceTel.: +33 2 51 89 86 73

SNI Grand-Ouest

Director: Frédéric Prévôt1 place du Maréchal Juin – CS 2400435040 Rennes cedex – FranceTel.: +33 2 99 67 44 40

SNI Group

Your contacts

Development teams to partner your projects

11 Résidence Aruba, Pessac (department 33)

Head Office100-104 avenue de France - 75013 PARIS - France

Tel: +33 1 55 03 30 00www.groupesni.fr

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Cover (from top to bottom):

résidence Bell’Vue, La Valette-du-Var (department 83),

résidence High Park 2, Asnières (department 92),

résidence Les jardins d’Aurélien, Fréjus (department 83).