Leaseholds
Usufruct fund for SCPI¹ units
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Presentation
A model set up by France Valley back in 2014 for leading institutional investors (insurance companies, life insurance real estate UCs, bank equity, pension and provident institutions, mutual insurance companies, ...) and now available to individuals.
This unique financial product is based on the slicing of SCPI shares with the ambition to meet the needs of high-yield seeking investors seeking attractive risk / return ratio.
France Valley
now represents 80% of the SCPI¹ usufruct market in France
¹Société Civile de Placement Immobilier. French SCPIs are unlisted investment vehicles raising funds to build a portfolio exclusively composed of real estate properties (offices, retail businesses, etc.). SCPIs are run by a management company authorized by the French regulator.
¹France Valley estimate, based on new money raised in slicing in 2023
Typical distribution of a usufruct fund
- 70% of the portfolio invested in SRI-labeled SCPIs
- 2/3 of the portfolio invested in Article 8 or Article 9 SCPIs within the meaning of SFDR
Mutualization and diversification of underlying assets¹
-
- Between 15 and 30 SCPIs
- More than 100 properties per SCPI on average
- 3 leases on average per building
¹Source: France Valley
Data to end Q1 2024; based on France Valley's usual averages for its 22 SCPI temporary usufruct funds under management.
Diversification across 2,500 buildings and 7,500 leases
Liquidity and returns are not guaranteed, but there is a risk of capital loss. Past performance is no guarantee of future results.
A particularly attractive and competitive risk-return profile vs. other asset classes, especially other real estate assets with higher volatility
A relevant investment strategy in a challenging real estate market
Market risks and their consequences for the usufructuary
Decline in appraisal values of real estate assets
The consequences for the usufructuary
No impact on usufruct value
An exclusively a cash-flow product totally insensitive to changes in the underlying value (value of the real estate)
Investment performance sensitive only to changes in the coupon
Inflation period
The consequences for the usufructuary
Rental income partially indexed to inflation
In times of inflation, potential performance upside
Liquidity risk
The consequences for the usufructuary
Liquidity organized by the payment of quarterly SCPI coupons (not guaranteed)
A dedicated team
at your service
