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Why recent SCPIs are outperforming

While the SCPI market experienced some turbulence in 2023 with the decline of the real estate market, the most recent funds seem not to have suffered. And for good reason: these SCPIs have numerous advantages and stand as innovative players whose relevant approach has clearly made a difference compared to that of the traditional management companies.
Their strategic approach, focused on the acquisition of modern and high-performing real estate assets, is accompanied by a genuine desire to stand out in a competitive market. This is notably manifested through advantageous pricing policies and a clear focus on satisfying and catering to the interests of investors.

Reading Time : 1 minut(s) - | Updated on 25-03-2024 09:00 | Published on 19-03-2024 08:56 

Elimination of entry fees: a strategy to align the fund's interests with those of the investors

In an effort to establish themselves in the market and attract a larger number of investors, some recent SCPIs have made the bold decision to eliminate entry fees, traditionally charged upon subscription. This approach, still rare in the sector for historical management companies, demonstrates a focus steadfastly directed towards the performance distributed to investors.

By alleviating initial costs, these SCPIs have more funds to invest in buildings. They also make the investment more accessible and more attractive, while ensuring rapid growth of their capital through effective fundraising on this important argument.

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The performances of recent years as a lever for growth

The strong past performances of recent SCPIs (Real Estate Investment Trusts) are a major asset in their ability to raise funds and quickly invest in new assets. By demonstrating effective management and the ability to generate attractive returns, they attract an increasing number of investors keen to participate in a proven investment model. However, be aware that performances and invested amounts are not guaranteed in SCPIs, and future results could obviously be lower in the coming years: past performances do not predict future performances. Still, for an investor, it is a valuable indicator to assess the relevance of the adopted investment strategies.

This positive dynamic creates a virtuous circle where past successes fuel future growth, allowing SCPIs to position themselves advantageously in a competitive market.

An agile response in a competitive market

The current competitive environment requires REITs to adopt both innovative and agile strategies to stand out. Recent funds are meeting this challenge by focusing on high-quality assets, geographically diversifying their investments (particularly in other European countries), and adapting their cost structures to maximize returns for their investors. This approach, combined with an effective fundraising strategy, allows them to grow rapidly and strengthen their market position.

Recent SCPI offer better development opportunities

People who invest in REITs know that the quality and condition of the property portfolio are fundamental criteria for achieving potentially optimized performance. However, it is much more difficult to maintain an acquired long-standing portfolio than to build a new one, which already has sufficient energy qualities and characteristics that meet market expectations. This is precisely where new REITs distinguish themselves from other actors who are often older, very large, and have a broad real estate portfolio that is difficult to quickly bring up to date.

New REITs represent a new generation of real estate investment, where performance, innovation, and customer orientation are at the heart of the strategy. By removing initial barriers (fees) and relying on a short but interesting history, they demonstrate adaptability and a desire to meet expectations. With a strategic vision that embraces the quality of assets, European expansion, and advantageous pricing management, new REITs are establishing themselves as the leaders of a rapidly changing market, offering investment opportunities to examine.