What is an OPCI: how does it work?
What is an OPCI?
OPCIs (Undertakings for Collective Real Estate Investment) are invested in real estate assets for more than 50%. A diversified collective real estate savings solution, OPCIs also include more than a third of financial assets and 5% of cash. OPCIs are thus in principle more flexible, but also more volatile, than SCPIs (Sociétés Civiles de Placement Immobilier). A useful solution in particular to build up an estate.
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.
The real estate portfolio of the OPCI PREIMium is made up of quality properties in the office, retail, residential, hotel, health and education sectors.
The OPCI Preim ISR benefits from the Socially Responsible Investment (SRI) label, a guarantee of a responsible and sustainable investment. It provides simple and indirect access to a portfolio composed mainly of diversified physical real estate in France and Europe. The portfolio is invested in office real estate in the Ile-de-France region, in the health sector and in student and senior residences in major cities. The financial portfolio will be managed by La Financière de l'Échiquier.
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.
Good to know :
The composition of OPCIs differs depending on whether it is a Société de Placement à Prépondérance Immobilière à Capital Variable (SPPICAV) - the equivalent of the legal form of SICAVs - or a Fonds de Placement Immobilier (FPI) - the equivalent of FCPs, to draw a parallel with the universe of financial products.
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. And as with any investment, past performance is no guarantee of future performance.
1 Les SIIC (Sociétés d'Investissement Immobilier Cotées).