What is an OPCI: how does it work?

Who is the OPCI for?

OPCIs can offer a solution to investors who are hesitating between investing in real estate or in the stock market. This collective savings solution is halfway between real estate investment and stock market investment. It is therefore a diversification tool. OPCIs also meet the objective of increasing the value of assets over the long term, in return for taking on risk. They can also be used to generate income. However, as with any investment, neither the potential gains nor the capital are guaranteed.

OPCI: an innovative real estate investment

Depending on their legal form, hybrid OPCI portfolios are made up of a minimum of 51% to 60% of buildings intended exclusively for rental or of shares in unlisted real estate companies. The latter may include units of SCPIs (Sociétés Civiles de Placement Immobilier), SCIs (Sociétés Civiles Immobilières) or other OPCIs. This pocket is thus partly uncorrelated with the financial markets.

The OPCI portfolio can also be invested up to 35% in financial assets. These are mainly stock market investments such as listed real estate companies1 , or financial products (shares, bonds, cash). Their volatility is thus higher than that of real estate.

What are the advantages of an OPCI?

Accessible with small amounts, these funds can be useful, in particular, to build up an estate. Like SCPIs (95% of which are invested in physical real estate, according to the Association Française de la Gestion Financière), OPCIs facilitate access to service sector real estate. Indeed, the direct acquisition of commercial, office, retail or healthcare real estate requires a high entry ticket. Subscribing to OPCI units allows you to entrust the selection and management of a property to a specialized company, in exchange for fees, in the face of demanding regulations. The risks are also mutualized in different types of property and geographically. It should be noted that the OPCI is obliged to distribute annually 85% of the rents received and 50% of the capital gains realized on the sale of properties. This may vary according to the way the assets are held.

Moreover, the OPCI is more liquid than the SCPI. This means that investors can request the redemption of some or all of the shares/units they hold at any time on the basis of the net asset value established after the date on which requests are centralized. Redemption requests are reduced, where applicable, by the redemption fees mentioned in the prospectus. The management company may, however, suspend redemptions of OPCI shares/units in the event of exceptional circumstances and solely in the interest of all shareholders/unit holders. It is advisable to refer to the OPCI prospectus and DIC.

What are the risks of OPCI :

Investing in OPCI units carries a risk of capital loss due to changes in the real estate and financial markets. Income is not guaranteed and may vary both upwards and downwards depending on the fund's performance. Investment in OPCI units is considered over the long term with a recommended investment horizon of 10 years. Liquidity is limited, as the management company does not guarantee the resale of units. Past performance is no guarantee of future performance.

¹ Les SIIC (Sociétés d'Investissement Immobilier Cotées).