A handful of SCPIs without entry fees have launched on the market for three or four years: Novaxia Neo in 2019, followed by Iroko Zen, Remake Live and Upêka, the launch of which was announced at the end of September 2023. As a result, a substantial saving for the customer, since these products traditionally charge very high subscription fees, between 7% and 12%. These fees are largely used to compensate those who distribute the funds.
In reality, these entry fees are felt…at the exit. Concretely, a saver wishing to invest in the SCPI Epargne landrace (La Française) pays 835 euros per share. This acquisition price includes the subscription commission.
If he wanted to resell it the next day, the sale price (we then speak of “withdrawal value”) would be 772.38 euros, corresponding to the purchase price less the subscription commission of 7.5%. For SCPIs without entry fees, the acquisition value and the withdrawal value are identical.
“Real estate is a long-term asset, it is essential that savers keep their share for at least ten to fifteen years, and the existence of entry fees encourages them to do so”argues Christophe Descohand, the general director of Moniwan, the online distribution platform of La Française. SCPIs without entry fees have also put in place safeguards to prevent investors from exiting too quickly. Iroko thus provides for an early exit commission before three years of 6%, while Novaxia Neo applies the same rate before five years.
Aligned interests
Moreover, “SCPIs without entry fees display higher management fees than others: they are between 14% and 18% of rents collected, compared to 11.3% on average for the entire market”, observes Jonathan Dhiver, the founder of the MeilleureSCPI.com platform.
A part is used to remunerate the distributor through retrocessions, in the absence of entry fees. “This fee structure makes it possible to align the interests of the management company with those of the investor: management fees are applied to the rents collected, so we have an interest in maximizing them”explains Laurent Boissin, chairman of the management board of Novaxia Investissement.
Another specificity: 0% subscription funds charge acquisition fees (deducted when purchasing a building) of between 3% and 5%, compared to less than 2% for traditional SCPIs.
You have 35% of this article left to read. The rest is reserved for subscribers.