Philippe Denis, financial director at Bouygues Immobilier Belgium
Can you explain to us what the needs of Bouygues Immobilier Belgium are with regard to completion bonds?
Why did you choose Euler Hermes? What were the advantages compared to other providers?
What has your experience been like with Euler Hermes?
About Bouygues Immobilier Belgium
Bouygues Immobilier Belgium is a subsidiary of Bouygues Immobilier, a major player in private real-estate promotion in France and Europe. For nearly 60 years the company has developed for its clients real-estate projects - residential, tertiary and commercial - covering more than 250 cities from 39 sites in France and 4 internationally, including Belgium.
Created in 2004, Bouygues Immobilier Belgium today has more than 2,100 new residences and incarnates a new vision of real estate based on comfort, accessibility and sustainability: essential elements for responding to the needs of its clients and the evolution of our modern lifestyles.
The Forest Village project
“Forest Village” is a vast eco-responsible real-estate project right in the heart of Brussels, in one of the liveliest quarters of the municipality of Forest. It extends over more than one and a half hectares and is close to stores and public transportation.
This project provides for a combination of green areas and environmentally-friendly urban amenities. It includes 7 stores or offices, 1 day-care centre and 94 residences: studios and 1 to 3-bedroom apartments. Marketing of the project began in 2020 and delivery is scheduled for the end of 2022.
What is a completion bond?
A real-estate contractor or project promoter is obliged, under certain conditions, to comply with the Act of 9 July 1971 on residential construction and the sale of housing, better known as the "Breyne Act".
This imposes on the contractor or promoter an obligation to provide to the purchaser, when the deed of sale is signed, a guarantee of completion of the works or of repayment. This guarantee is intended to protect the purchaser:
- Against the possibility of bankruptcy or insolvency of the contractor or the promoter.
- In the event that the contractor or the promoter do not deliver construction works that are in accordance with the contract.
This completion bond is generally furnished by a bank, but it can also be issued by an insurer such as Euler Hermes.
Why choose Euler Hermes for your completion bonds?
- More credit opportunities
Asking for a completion bond from your bank will have a direct impact on your lines of credit. By contrast, if you choose an insurer like Euler Hermes, your borrowing capacity from your bank remains fully available.
- Your premium goes down as the works advance
As the works progress, the amount of risk to be insured declines, which is why we offer you the possibility to reduce the guarantee quarterly. Result: you no longer insure the initial total amount, only the current risk.
- Speed and performance
As a specialised insurer, we are experts in sureties and guarantees like the completion bonds. Thanks to our specialists and our high-performance systems, we’re often able to provide a guarantee within a single working day.
- The security of the Allianz group
Euler Hermes is a subsidiary of Allianz, one of the world’s largest insurers. This solid anchoring enables us to obtain a high “AA” rating from the credit agency Standard & Poor´s. This score is tangible proof of the financial soundness of Euler Hermes.
Every construction project is unique. Euler Hermes offers a completion bond for individual projects, but can also offer a fixed guarantee line making it possible to cover several distinct projects or large-scale real-estate projects implemented progressively. Contact our team of specialists with your plans and we will propose to you an appropriate coverage.
Like to learn more about our solutions for sureties and guarantees?
Contact our team for a tailor-made solution. Our experts would be delighted to help you.
The Confidence Gazette provides you with insights
to help you safely operate your company
to help you safely operate your company