A dramatic recent increase in French SCPIs, effectively open-ended funds, investing outside their home market in other European countries, notably the UK, is set to continue, reports Savills.
SCPIs, or Société Civile de Placement Immobiliers, are real estate investment vehicles that enable individuals to invest in a professionally managed property portfolio. They have been more and more active in the UK in recent years with key examples being Corum Asset Management, Iroko Zen and Sofidy.
In a video interview at the Mipim conference in Cannes with CoStar News and sister title Business Immo, Philippe Cervesi, the president of Corum Asset Management, explained the reasons for SCPIs' increased focus on markets outside of France and suggested the window of opportunity was closing. The funds have targeted sectors such as regional offices and retail parks where they have been able to buy at competitive yields compared to similar opportunities in France, and where the competition from other buyers has been thinner than at other times. The funds typically have a strategy of not investing in sub-7% net initial yield assets.
In its report on the trend Savills finds that a "new wave of capital" from SCPIs will target the Europe’s real estate markets, including the UK.
By the first quarter of 2025, domestic investment represented circa 20% of SCPI acquisitions, the opposite of the situation in 2015, when cross border investment accounted for slightly less than 20% of total capital deployed. Last year, SCPI funds allocated nearly €2.3 billion across Europe (excluding France) of which the UK, followed by Spain, the Netherlands, Italy, Germany, Ireland and Poland were the main target destinations for this investor group. So far in 2025, Italy is leading the UK, Savills reports.
According to ASPIM-IEIF data, net SCPIs’ capital inflows are also on the increase again, rising from €0.8 billion in Q1 2024 to €1 billion in Q1 2025.
Lydia Brissy, Director European Research at Savills, said in a statement: “French SCPIs benefit from a unique competitive edge thanks to their structure and investor base. Unlike many institutional investors, they do not rely heavily on debt financing. Their agility stems from consistent fundraising through a broad base of retail investors in France, who can subscribe on a monthly or quarterly basis. This steady flow of capital allows SCPIs to remain active in the market, even during periods of uncertainty, without needing to depend on bank loans or navigate volatile credit conditions.”
Emma Steele, Director, Global Cross Border Investment at Savills, added: “In Q1 2025, the UK was the destination of choice for approximately a third of SCPI capital, an improvement on 2024 when it captured just under a quarter. Moving forward this year we expect the UK to continue being a key beneficiary of SCPI investors’ expansion strategies, in particular given the liquidity of the market, the ease of trade and the relative attractive yields on offer.”
James Burke, Director, Global Cross Border Investment at Savills, added: “We are also seeing a strategic push by this investor group into Central and Eastern Europe, where risk-adjusted returns have become increasingly attractive, with Poland being the principal beneficiary to date. Simultaneously, SCPIs have moved beyond their traditional focus on offices, diversifying into healthcare and the living sector, particularly where living assets benefit from secure income such as leased purpose-built student accommodation and hotels.”