Unlisted real estate funds: increased performance in the first half
ASPIM and IEIF have published the performance of unlisted real estate funds in the first half of 2021. With inflows of €5.4 billion in the first six months of the year, the three main categories of funds aimed at individuals or distributed by life insurance recorded an increase in their performance in the first half of 2021.
Fund performance in the first half
- SCPIs
In the first half of 2021, the EDHEC IEIF France corporate real estate index shows an overall performance of +2.0%. This performance breaks down into a distribution1 of 2.1% and a unit price increase of -0.1%. Although the index shows a rise in the level of distribution over a year, the market has not yet returned to its pre-crisis level (in the first half of 2019, the current yield stood at 2.2%).
- Retail OPCIs
According to the IEIF retail OPCI monthly index, at 30 June 2021 the overall performance stood at 2.0% on a year-to-date basis. Sustained appraisal values and the improvement in the financial markets enabled retail OPCIs to post attractive performances in the first half of 2021.
- Non-trading real estate companies (SCIs) underlying life insurance
SCIs in unit-linked life insurance are capturing a large share of real estate fund inflows. All funds managed by asset management companies had inflows of €1.6 billion in the first half of 2021. Their overall performance has been +1.6% since the beginning of the year.
1 Current yield
SCPIs have invested €3.1 billion since the beginning of the year
On the investment market side, SCPIs made acquisitions totalling €3.1 billion over the first six months of the year compared with €3.5 billion in the first half of 2020. Offices still account for the majority of acquisitions by value (63%), followed by health and education (16%), shops (9%), hotels and leisure (4%), logistics and business premises (3%), mixed premises (3%) and, lastly, residential (2% including managed residences).
Geographically, acquisitions were largely made in the Greater Paris region (39%, including 5% in Paris), then in other countries (38%) and in the regions (23%). Outside France, Germany remains the leading investment destination with 15% of the amounts invested, ahead of the United Kingdom (9%), Spain (4%) and Ireland (3%).
SCPIs also sold €300 million worth of assets, compared with €463 million in the first half of 2020. Offices account for 77% of assets sold by value and shops for 14% (respectively 79% and 10% in the first half of 2020).