A collective investment scheme in real estate (OPCI) is an investment product accessible to the general public. Situated at the crossroads between SCPIs and UCITS, it combines exposure to physical real estate with potentially advantageous taxation and a certain intrinsic liquidity. Like any collective investment vehicle, the OPCI pools investors’ funds to manage them by acquiring various assets, mainly real estate, and redistributing returns, such as rents.

It represents an investment in « paper stone », allowing savers to invest indirectly in real estate. 

Types of OPCI: There are two main types of OPCI, operating in a similar way to UCITS: 

• SPPICAV: Similar to SICAVs. 

• FPI: Similar to FCPs. The OPCI allows you to diversify your savings, particularly within the framework of a life insurance contract or a Retirement Savings Plan (PER), thus offering an alternative to the declining returns of euro funds, while limiting risks. 

Unlike euro funds, the OPCI does not guarantee the invested capital. It is also possible to invest in OPCI units outside of these frameworks, but the taxation will then be heavier for the investor. OPCI management: The OPCI is managed by a portfolio management company (SGP) approved by the Autorité des Marchés Financiers (AMF). The AMF classification places the OPCI at level 4 of the risk scale (1 to 7), reflecting the absence of capital guarantee.

How OPCIs work: An OPCI is a real estate investment vehicle of the paper stone type. Unlike an SCPI, it must display diversification in financial assets, which means that it is not a 100% real estate vehicle. The real estate portion of an OPCI is capped, and the management company must respect this limit. 

Professional real estate: The OPCI’s investments are mainly focused on professional real estate, in particular offices and retail premises. Real estate assets must represent at least 60% of the OPCI’s assets. Financial investments: These real estate investments must not exceed 35% of assets. They may include stocks, bonds or units of French and foreign UCITS, thus making it possible to benefit from the performance of other financial markets. 

Liquidity: Part of the funds must be placed in monetary vehicles to facilitate redemptions requested by savers. These liquid assets must represent at least 5% of the OPCI’s assets.

Income Distribution: Income generated by OPCI investments, such as rents, is redistributed to investors, thus providing a regular flow of income while diversifying their investment portfolio. OPCIs may pay income to unitholders according to specific terms established by the regulations, which vary depending on the type of OPCI. For SPPICAVs, the distribution rules are as follows: 

• 85% of the distributable income of the previous financial year, from income from real estate, within five months of the end of the financial year; 

• 50% of net capital gains from the sale of real estate assets, within five months of the second financial year following their realization; 

• 100% of the net income of the previous financial year, from income distributed by SPPICAV subsidiaries benefiting from a corporate tax exemption regime, within five months of the end of the financial year. For REITs, the terms are:

• 85% of property income, within five months of the financial year; 

• 85% of capital gains from the sale of properties, within six months of the sale; 

• 85% of other income, within five months of the financial year. Realization of Capital Gains: In addition to income distributions, OPCIs offer investors opportunities for gains through the (non-guaranteed) increase in the net asset value of the units. If the value increases, the investor can realize a capital gain when reselling the units.

Advantages of OPCIs: Affordable entry ticket: Initial investments for an OPCI share range from €100 to €1,000, which is more affordable than buying real estate directly. Delegated management: Like other Pierre Papier products, OPCIs allow you to invest in physical real estate without worrying about management. The management company selects and rents out the properties, then distributes the income. 

Diversification: OPCIs offer interesting diversification thanks to the majority investment in real estate (direct or indirect), as well as a share of financial assets and a share of liquid assets. 

Liquidity: Compared to SCPIs, OPCIs benefit from better liquidity thanks to their pockets of liquid and financial assets. However, OPCIs remain exposed to a liquidity risk due to the low liquidity of the real estate market. Selling buildings can take time, especially in times of tension on this market. 

Reduced fees: The subscription fees and management fees of OPCIs are generally lower than those of SCPIs.

Why invest in OPCIs: Investing in OPCIs is aimed at those who wish to diversify their investments, by accepting a share of risk, to benefit from the performance and stability of real estate investment, while taking advantage of reduced fees and good liquidity. 

In this sense, integrating OPCIs into a medium-term life insurance contract is a wise strategy, in particular to take advantage of the advantageous taxation of life insurance redemptions after 8 years of ownership. The liquidity of OPCIs does not contradict the recommended investment horizon for real estate (8 to 10 years minimum). OPCIs are not limited to real estate; a significant portion of these funds is also invested in financial markets and in cash. 

This financial pocket, including stocks, bonds and UCITS units, allows for greater diversification of a real estate portfolio compared to a traditional investment in stone or other paper stone media, such as SCPIs. This exposure to financial assets offers a different return/risk ratio, because the investor is exposed to fluctuations in the financial markets, which are more volatile than real estate, but with potentially higher returns, especially in the event of a rise in stock market indices. 

Rate of return of an OPCI: In the long term, the rate of return of an OPCI is estimated at between 3.5 and 4% per year. The ASPIM (French Association of Real Estate Investment Companies) and the IEIF (Institute of Real Estate and Land Savings) publish the performance of OPCIs each year.

The average overall return of OPCIs was: -1.54% in 2020. +4.40% in 2021. -3.46% in 2022. In 2022, OPCIs collected less than 500 million euros, compared to nearly 2 billion in 2020, a drop that benefited SCPIs, perceived as a safe haven in an economic context marked by high inflation.

Differences and similarities between OPCI and SCPI: OPCI and SCPI are real estate investment vehicles, offering the advantage of not requiring direct management while pooling risks. 

SCPI: The SCPI invests 100% of its assets in rental real estate. The management company administers a real estate portfolio and pays the rents generated proportionally to the unit holders. 

OPCI: The OPCI diversifies its investments with 60% in rental real estate and 40% in financial assets and liquidities, thus offering a more dynamic investment. 

Liquidity risk: The OPCI, thanks to its pocket of liquidities and securities, is less exposed to liquidity risks. Investors can recover their capital at any time. On the other hand, for SCPI shares, the resale is often long and depends heavily on the conditions of the real estate market. 

Performance: In conclusion, both OPCI and SCPI offer distinct advantages, particularly in terms of asset composition and liquidity, allowing investors to choose the investment vehicle that best fits their profile and financial objectives. 

Performance of OPCI compared to SCPI: In general, OPCI returns are more volatile than SCPI returns. Average SCPI returns over 15 years exceed 8%, largely due to the geographic and sectoral diversification of the assets held. OPCI, being more recent vehicles, have longer-term performances that are more difficult to estimate. However, recent trends show that fluctuations in the financial markets strongly influence their performances. For example, in 2022, the decline in stocks led to a negative return for OPCI.

Taxation: SCPI income is taxed as property income. In the event of resale of the shares, the capital gains are subject to the real estate capital gains regime. For OPCIs, SPPICAVs are subject to the taxation of movable capital, while FPIs and SCPI shares are taxed in the same way (property income and real estate capital gains). 

Entry Fees: Subscription fees vary depending on the type of support. On average, the fees are around 10% for an SCPI compared to 4% for an OPCI. 

Examples :

OPCI SwissLife Dynapierre:

The OPCI SwissLife Dynapierre (managed by SwissLife AM) stands out for its low exposure to financial markets (UCITS and listed real estate) and a significant share of liquidity (28.59% as of 04/29/2022). 

Thus, the performance of this fund is less affected by fluctuations in the financial markets. Its real estate strategy mainly targets residential and professional real estate (offices, shops, hotels, logistics) in France and in European OECD member countries. Since its creation on 06/30/2011, SwissLife Dynapierre has posted an annualized performance of 3.67%, dividends reinvested (performance stopped on 04/29/2022). 

It is important to note that past performance is not a guide to future performance.

OPCI Diversipierre:

The OPCI Diversipierre (managed by BNP Paribas Real Estate) follows a traditional approach with a target allocation of 65% in physical real estate, 14.5% in listed real estate, 14.5% in covered bonds and 6% in cash. Real estate investments are balanced between France (46%) and several European countries, mainly Germany and Italy, as of 04/29/2022. 

The composition of real estate assets is 70% offices, 19% retail, 7% residential and 4% hotels. From the end of 2014 to the end of 2021, Diversipierre posted an annualized performance of 4.25% (dividends reinvested). The annual return peaked at 8.87% in 2019, and the OPCI recorded only one negative year in 2020 (-1.21%). Past performance is no guarantee of future performance. 

OPCI Sofidy Pierre Europe:

The OPCI Sofidy Pierre Europe (managed by Sofidy) consisted, as of 31/03/2022, of 63% physical real estate, 28% financial assets (including 36% listed real estate shares) and 9% cash. The real estate assets are spread between France and several European countries. The majority of investments are in office buildings (40%), with notable diversification in logistics, housing, retail and hotels (around 10% each). 

Since its launch in July 2018, Sofidy Pierre Europe has achieved a performance of 18.99% (dividends reinvested) as of 31/03/2022. Past performance is no guarantee of future performance. 

Frequently asked questions about OPCIs: 

What is an OPCI? 

An OPCI is a real estate investment fund, mainly invested in physical real estate (often professional), supplemented by a pocket of financial assets (shares, UCITS) and a portion of cash. 

How to invest in an OPCI? 

It is possible to invest in an OPCI in three ways: via a securities account (in cash), in a life insurance contract or in a Retirement Savings Plan (PER). On the other hand, it is not possible to invest in an OPCI as part of a PEA. 

Difference between SCPI and OPCI? 

Unlike an SCPI, an OPCI must include a portion of financial assets. The proportion of purely real estate investments in an OPCI is at least 60%, compared to 90% for an SCPI. This diversification allows the OPCI to be more liquid, thus facilitating redemptions.