Will holders of shares in real estate investment companies (SCPI) see the light at the end of the tunnel? For over a year, these products allowing investment in professional real estate have been suffering from the rise in interest rates and the crisis in the office sector. As a result, many vehicles have seen their value melt like snow in the sun. In the coming weeks, the management companies of these products will publish the valuations of their assets at the end of June, which should allow us to know whether the majority of the decline is behind us or whether adjustments are still necessary.
On August 8, HSBC REIM announced its intentions for its Elysées Pierre support, by informing unitholders of a new price reduction, from 767 to 660 euros, or almost -14%. “The return on risk-free investments has become comparable to that of real estate, which is leading to a scarcity of buyers and therefore a drop in the market value of buildings,” the manager analyzes. Some players have confirmed that they will maintain their current prices. But the results of the sector’s giants are not yet known.
Net collection at its lowest
MeilleureSCPI, the reference site, thus recommends that savers rethink their investment strategy. “In an uncertain context, diversifying your SCPI portfolio remains a prudent strategy to reduce the risks linked to market fluctuations,” the broker believes in particular. The current wait-and-see attitude weighs on the net collection of SCPIs: over the first six months of the year, Aspim, the French Association of Real Estate Investment Companies, estimates it at only 1.7 billion euros. At the peak of activity, in 2022, it had exceeded 10 billion over twelve months. However, in the absence of new buyers, holders wishing to recover their investment find themselves blocked. Thus, the amounts awaiting withdrawal increased again in the second half of the year, reaching 2.6 billion euros.
Of course, price reductions help improve yields for new entrants. But to regain investor confidence, asset management companies are also counting on other levers. Primonial REIM has thus changed its name to Praemia REIM. At Paref, a complete overhaul of the range is expected for the start of the school year with, already announced, the merger absorption of Novapierre Allemagne 2 by Novapierre Allemagne and their change of name to Paref Prima. AEW, for its part, has counted on a repositioning of Fructirégions Europe, renamed for the occasion AEW Opportunités Europe. So many semantic ways of wiping the slate clean…