Corum innovates again with the launch of the first SCPI invested in the United States

The management company innovates by launching the first French SCPI exclusively invested in the United States. A new market where Corum intends to take advantage of the many opportunities of the moment, but which also exposes the associate to new kinds of risks.

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“Who would have predicted, 15 years ago, that this somewhat dusty Franco-French vehicle that is the SCPI would one day invest in the United States?”asks Frédéric Puzin, founding president of the Corum group. This Tuesday, November 13, during a press conference, the group, specializing in savings, announced the launch of Corum USA, its fourth real estate investment company (SCPI).

A pioneer in SCPI investment outside French borders, Corum is once again since its latest addition is the first to focus exclusively on the market across the Atlantic, with an “opportunistic” strategy. Understand: without being limited to one asset category – the SCPI, diversified, will be able to invest in offices, shops, logistics, etc. – and by taking advantage of a particular market moment in the United States.

A “market moment” to be seized across the Atlantic with falling prices

The context is in fact more favorable for real estate investment. Currently, key rates are falling more quickly in Europe than in the United States. Professional real estate prices are therefore starting to rise again in France. Consequence: more expensive acquisitions for SCPIs, and therefore a risk of seeing the return decrease for the partners.

Conversely, on the American market, rates remain higher and access to credit difficult. Demand is therefore at half mast: the number of transactions was halved between 2022 and 2023. However, when demand falls, so do the prices of goods: “We are currently seeing declines of between 20% and 50% in the value of property”confirms Philippe Cervesi, real estate director within the Corum group. If the level of rent paid by tenants is maintained, acquiring properties at a discounted price therefore increases profitability: currently, the average yields observed on offices in the centers of large cities rise to 6.7% in the United States. To provide proof by example, the first acquisition of Corum USA, a retail asset in New York, shows a return of 7%.

Taxation favorable to partners

Another advantage: the American market is also presented as more favorable to owners. On this first acquisition, the lease is for example 15 years, “while on a classic lease in France, tenants can leave every three years”, recalls Frédéric Puzin. “Large work is also often the responsibility of tenants, and not owners”adds Philippe Cerversi. Result: fewer costs for the SCPI, and therefore more dividends paid to partners.

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Another advantage is lower taxation for SCPI partners: under an agreement between the United States and France, their income is considered financial income, which makes them eligible for the single flat-rate levy (flat-rate). tax of 30%) in France. While usually, the taxation of SCPIs is the same as in the case of holding a classic real estate property, with a taxation of property income with income tax according to its marginal tax bracket (TMI, of 0 % at 45%), to which are added social security contributions at a rate of 17.2%.

Euro/dollar exchange risk

In return, it will be necessary to agree to add, to the risk inherent in investment in real estate, that of currency change, with rents collected in dollars by the SCPI and paid in euros to the partners. If the greenback falls against the single currency, the amount of dividends received in euros by the partner will therefore also fall. A risk all the greater as the payment of dividends will be monthly on this new SCPI.

On the other hand, it is possible to hope, if the Federal Reserve (Fed) continues its cycle of lowering key rates, that real estate prices will rise, and increase the value of the assets held by the SCPI. In this case, the partners will benefit from an additional yield lever, with an upwardly revised share price.

Finally, the SCPI Corum USA displays a target distribution rate of 4.5%which is only the average measured in the first half of 2024 for French SCPIs invested in France and Europe. However, the group is used to displaying conservative objectives: the latest of its SCPIs, Corum Eurion, for example, has exceeded its target return of 4.5% by at least 1 point every year since 2020.