Bad times for SCPI holders. The clouds are accumulating above these real estate investment companies, which allow savers to invest with a few thousand euros in a park of offices, shops or warehouses, and to receive the rents in proportion to their bet. Certainly, income is still there, with an average yield stable at 4.52% last year. But it is becoming more and more complicated for SCPI holders to part with their shares, while many supports have seen their prices fall. It’s even mission impossible for certain funds!
Buyback offers have multiplied in recent months, while subscriptions have dried up. As a result, there is a traffic jam and the market seizes up. At the end of last year, 2 billion euros of shares were waiting to find a buyer, according to Aspim, the sector’s professional association. For four SCPIs, this represents more than 10% of the total capitalization of the product: Pierrevenus from Aestiam, Novapierre Résidentiel from Paref Gestion, as well as LF Grand Paris Patrimoine and Crédit Mutuel Pierre 1 from the French company REM.
For ten other products, this illiquidity problem concerns 5% of their outstanding assets, including some heavyweights in the sector such as Primopierre from Primonial REIM, Epargne Financière from the French company REM or even PFO2 from Perial AM. Pierre Garin, director of the Linxea real estate division, discusses in the SCPI observatory published in mid-February the possibility of seeing certain players transform their currently variable capital funds into fixed capital SCPIs. A development which would allow holders of shares wishing to resell them to adjust their price downwards, until they find a buyer.
The hemorrhage is even more sensitive for liquid real estate funds, such as real estate companies (SCI) and real estate collective investment organizations (OPCI), marketed via life insurance. The performance of these product categories was poor in 2023, with declines of 6.8% and 7.6%, respectively. To stem the fall, certain players have decided to cap withdrawals on this type of support, like Sofidy on its OPCI Sofidy Pierre Europe and on its SCI Sofidy Convictions Immobilières. The management company also added an exit fee of 3% to the latter. Alas, the liquidity difficulties are not expected to be resolved immediately, especially as new drops in value have been announced, notably at Primonial. SC Capimmo, leader in the sector, lost nearly 20% in one year.