Masteos Acquisition: Key Details, Impact, and What Comes Next

Novaxia's acquisition of Masteos marks a significant development in the real estate investment sector. This strategic move not only strengthens Novaxia's position in turnkey rental investments but also underscores its commitment to sustainable urban development. The acquisition, approved by the Paris Commercial Court, highlights the potential for innovative growth in the industry.

What Is Masteos?

Founded in 2019, Masteos specializes in turnkey rental property investments. Their comprehensive services include property search and acquisition, financing assistance, renovation, furnishing, and professional rental management. Masteos stands out in the market by offering an end-to-end solution that saves clients significant time and provides a single point of contact. Their extensive geographical reach across over 20 cities in France and strong customer satisfaction further differentiate them in the industry.

Who Acquired Masteos?

Novaxia operates at the intersection of real estate and savings, focusing on sustainable and socially responsible investment. The company manages a range of ISR-labeled funds through Novaxia Investissement, allowing investors to participate in impactful real estate projects. Additionally, Novaxia Développement oversees urban recycling projects, transforming obsolete assets into residential or other needed properties. As the first mission-driven company in the real estate sector, Novaxia manages nearly 2 billion euros in assets, positioning itself as a leader in sustainable real estate savings.

When Was Masteos Acquired?

Novaxia acquired Masteos on March 7, 2024. This acquisition occurred during a period of financial restructuring for Masteos, which had been placed in judicial recovery earlier in January 2024. The timing aligns with broader industry trends, including market corrections and financial difficulties faced by several real estate and tech firms in France. This strategic move by Novaxia aims to capitalize on the renovation of old residential properties, especially as the Pinel tax incentive for new housing nears its end.

Why Was Masteos Acquired?

• Market Expansion: The acquisition of Masteos allows Novaxia to diversify its activities and expand into the turnkey rental investment market. By leveraging Masteos' established presence in over 20 cities in France, Novaxia can broaden its geographical reach and tap into new customer segments.
• Technology Integration: Masteos' expertise in proptech provides Novaxia with advanced technological capabilities. This integration enhances Novaxia's real estate investment and management operations, improving efficiency and supporting the industrialization of their business model.
• Competitive Advantage: Acquiring Masteos strengthens Novaxia's position against competitors by diversifying its portfolio and enhancing its market presence in sustainable real estate savings. The combined expertise in turnkey rental investments and urban recycling projects positions Novaxia as a leader in the industry.

Acquisition Terms

• Acquisition Price: 1 million euros
• Payment Method: The specific payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • The acquisition was approved by the Paris Commercial Court.
  • Masteos and its subsidiaries were acquired following their placement in receivership.
  • The new entity will be branded as "Masteos by Novaxia" and led by the current CEO of Masteos, Thomas Maudet.
  • Novaxia has allocated a budget of 5 million euros to support the development and industrialization of "Masteos by Novaxia."
  • Novaxia will retain 46 Masteos employees and aims to make the new entity profitable by 2026, targeting 1,000 transactions per year within three years.

Impact on Masteos

The acquisition of Masteos by Novaxia has led to significant changes in operations and management. The new entity, branded as "Masteos by Novaxia," will be led by Thomas Maudet, the current CEO of Masteos. Novaxia has integrated 46 Masteos employees into its structure, ensuring continuity and leveraging their expertise. A strategic relaunch plan has been developed, focusing on BtoBtoC distribution, rationalizing offers around key agglomerations, and improving operational efficiency. This integration aims to enhance the operational and financial rigor of Masteos, aligning with Novaxia's broader goals.

In terms of product offerings and services, the acquisition allows Masteos to expand its distribution channels to include Wealth Management Advisors and Private Banks. The focus will be on a streamlined set of offerings targeting key agglomerations and specific financial goals such as retirement preparation, tax reduction, and income generation. The goal is to make "Masteos by Novaxia" a profitable entity by 2026, with a target of 1,000 transactions per year within three years. Employee reactions have been generally positive, with the retention of a significant number of staff, while customers are expected to benefit from enhanced service quality and new investment opportunities.

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