SCPI offers the opportunity to invest in the Grand Paris without directly purchasing real estate. Our selection.
Directly buying a property is not the only way to invest in the Grand Paris. Real Estate Investment Trusts (SCPI) also provide opportunities in this area. “Given the property prices in the region, this can be a good alternative,” explains the blog Loge Toi.
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These products allow for investment with a more modest contribution, starting from a few thousand euros. They also have the advantage of offering diversification at a lower cost, as their portfolio consists of numerous assets.
Please note that these are primarily offices and not apartments. Two SCPI (LF Grand Paris Patrimoine and PF Grand Paris) clearly show that they intend to focus on the development of office real estate around the capital. And beyond these two specific cases, there are other solutions to combine real estate and the Grand Paris.
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PF Grand Paris, the diversification card
PF Grand Paris is not a newcomer in the SCPI landscape. Established in 1966 under the name Participation Foncière 1 (PF1), this variable capital company, managed by Perial AM, specializes in real estate in the Île-de-France region. This positioning was confirmed in October 2017, when the structure changed its name to more directly play the Grand Paris card.
With a minimum subscription of 10 shares, the entry ticket here is just over €5,000, granting access to a highly diversified portfolio: PF Grand Paris manages 126 properties with a total area of approximately 290,000 m² and has a financial occupancy rate of 86.9% as of September 30. In recent years, the yield has been in line with the industry average, with a yield of 4.40% in 2018 and an average yield over 10 years of 5.24%.
On the other hand, it should be noted that PF Grand Paris has one of the longest deadlines. The company has set it for the first day of the sixth month following the subscription. In practical terms, this means that an investor is not entitled to dividend payments within the six months following the purchase of shares. This is an element to include in one’s simulations.
LF Grand Paris Patrimoine, a defensive strategy
Like PF Grand Paris, LF Grand Paris Patrimoine is an older SCPI (La Française Pierre, founded in 1999), which has recently changed its name. Both structures share many similarities, starting with their management style (offices in the Île-de-France region) and their size (€878 million in capitalization for the latter and €761 million for the former).
However, the SCPI offered by La Française AM has its own characteristics. With a more rational portfolio (58 properties for 169,000 m² managed), LF Grand Paris Patrimoine has a more defensive strategy than its competitor in the eyes of industry professionals. The results speak for themselves. The IPAC was designed to generate a yield of 4% in 2018 and has offered an average yield of 3.84% over the past ten years.
In return, it is less demanding in terms of subscription fees (8% excluding tax compared to 9.5% excluding tax) and more accessible, as the minimum subscription is only €3,000 (10 shares at €300 each). Finally, this SCPI has another significant advantage: its very short lock-in period. Subscribers are entitled to dividends on the first day of the month following the purchase of shares.