SCPIs and OPCIs FIRST SEMESTER 2019: INTEREST FROM SAVERS IS STILL VERY HIGH
Figures released by ASPIM-IEIF for the first quarter of 2019 confirm the current popularity among savers for the real estate investment funds which are SCPIs and Retail OPCIs.
Net inflow
- SCPIs
During the first semester of 2019, SCPIs received the unprecedented sum of 4.3 bn € (which is an increase of 78% over the first semester of 2018 which totalled 2.4 bn €). This volume is 12% higher than the record for the first semester in 2017 which was 3.8 bn €. Also during the first semester SCPIs realised a total of 3.6 bn € of acquisitions and 568 million € in disposals. The acquisitions were mainly in the sectors of offices (62%), commercial premises (11%) and hotels (7%), firstly in the Paris region (47%, of which 16% in Paris) then abroad (34%, half of which was centred on Germany) and in the regions (19%). The disposals mainly concerned offices in the Paris region located outside Paris itself (59%).
This year, 2019, is already lining up as a historic year for SCPIs. Year to year, net income is close to 7 billion € and their investments total 7.5 billion €.
Retail OPCIs
Net subscriptions of the 18 Retail OPCIs totalled 1.23 bn € during the first six months of the 2019 financial year in contrast to the 1.13 bn € in the first half of 2018, which is an increase of 9%. Over the past 12 months Retail OPCIs received a total of 2.25 bn €.
In total, the cumulated net inflow of SCPIs and Retail OPCIs reached 5.5 bn € during the first semester 2019, which is an increase of 56% when compared with the first six months of 2018 (3.5 bn €).
Capitalisation
- SCPIs
The capitalisation of SCPIs reached 60.3 billion € on 30 June 2019 (against 52.8 bn € twelve months previously, that is, a rise of 14% in one year, and 55.4 billion euros on 31 December 2018, a rise of 9% over the last six months). The capitalisation of Commercial real estate SCPIs rose to 56.4 bn € by 30 June 2019 (as opposed to 48.8 bn € twelve months previously, which is a 15% rise in one year).
- Retail OPCIs
Net assets of Retail OPCIs rose to 16.6bn € by 30 June 2019 against 14.1 bn € on 30 June 2018 (that is, a rise of 17% in a year) and 15.1 bn € on 31 December 2018 (an increase of 10% over the previous 6 months).
On 30 June 2019, total capitalisation of these two major categories of unlisted real estate funds aimed at private investors climbed to 76.9 billion €, against 66.9 billion on 30 June 2018 (+15 % in one year) and 70.5 billion € on 31 December 2018 (+9 % over 6 months).
Performances
- Commercial real estate SCPIs
The annualised distribution rate of the EDHEC IEIF commercial real estate France index rose to 4.52% by 30 June 2019 against a distribution rate market value of 4.35% at the end of 2018.
- Retail OPCIs
The annualised current yield of the 18 Retail OPCIs was at 1.1% on 30 June 2019 against 1.2% on 31 December 2018.
If the current yield has remained stable since January, the global performance has improved markedly: 2.5% over one year to 30 June 2019 against 0.8% over one year to 31 December 2018.
Véronique Donnadieu, Chief Executive of ASPIM, comments: "In a context of historically low interest rates that is already favourable to investing in real estate, the significant regularity in the performance of unlisted real estate investments funds explains the present interest that savers have in this kind of investment. Management companies have been very active on the investment market in pursuing the diversification of their portfolio and accompanying regional economic development."