Elevation Capital Partners, management company of the Inter Invest group established overseas for 33 years, launched at the beginning of September the first civil investment company dedicated to tertiary real estate in the departments, regions and communities beyond- mer : la SCPI Elevation Tertiom. Nina Guyot's explanations, director of partnerships at Inter Invest.
Meeting Leader : What is the operating mode of the SCPI Elevation Tertiom ?
Nina Guyot : It is a variable capital performance SCPI whose strategy is to build up tertiary real estate assets in the overseas territories.. It is aimed at all types of investors wishing to diversify their savings by giving them access to real estate assets., that they would not necessarily have been able to acquire as individuals. These assets are leased to companies, and the rents received by the SCPI are distributed among the investors, in the form of dividends, in proportion to their participation. The investor delegates the entire management of the asset to the SCPI, which includes investment selection, rental and maintenance of assets. He doesn't care about anything. This is the interest of the SCPI : rent without suffering the disadvantages. The recommended investment horizon is ten years with an internal rate of return objective of 9% over this period.. The annual distribution rate objective, not guarantors, de la SCPI Elevation Tertiom is about 8 %, however the distribution and exit conditions will depend on the evolution, upwards and downwards, real estate markets1.
What types of real estate assets does SCPI Elevation Tertiom’s assets consist of? ?
It is doubly diversified. Geographically, the SCPI operates in all overseas territories. In terms of assets, it will invest in office buildings, commercial premises, logistics buildings and managed residences. These will be existing assets producing already established returns, but also new or almost new assets responding to the strong demand for corporate real estate in Overseas Territories, particularly in Reunion. Elevation Tertiom will be able to operate for sale in a future state of completion (FIDELITY) on new constructions meeting the latest environmental standards, seismic and anticyclonic.
Ensuring functional diversity between habitats, offices and shops, the Heart of the City eco-district of La Possession, where Elevation Tertiom acquired 35 commercial assets, will accommodate some 6,000 inhabitants by 20263
Has Elevation Tertiom already made acquisitions in Reunion Island? ?
The SCPI has already collected €10 million. Its second acquisition concerns 35 independent businesses, at the foot of the building on the main artery of the “Cœur de Ville” eco-district in La Possession. They will be delivered early next year. The high level of pre-letting of rental space, already reaching almost 75%, demonstrates the attractiveness of this operation. otherwise, SCPI Elevation Tertiom has already seized a first investment opportunity in Guadeloupe with six commercial premises located in Saint-François.
Is a minimum investment amount required? ?
Only during the first subscription : you are required to subscribe a minimum of 15 shares for a unit subscription price of €200, i.e. a minimum investment of €3,000. There is no minimum subsequent subscription. Point to emphasize : the investor can acquire his assets in full ownership or in bare ownership. Bare ownership presents the advantage of being an owner without receiving rental income during the period of dismemberment of the property.. On the tax front, he therefore does not pay tax on this property income over this period. Bare ownership investment does not fall within the scope of real estate wealth tax either.. This is particularly interesting for subscribers with high taxes..
How much are the management fees? ?
First of all, subscribing to SCPI Elevation Tertiom shares does not incur entry fees2. All subscribed capital is used to invest from the start. The management commission is modulated according to the rental yield of the acquired property. As long as this yield is less than or equal to 7,5 %, it amounts to 10% per year. When the asset generates a rental yield greater than 7,5 %, it increases to 20% per year. This management fee includes insurance, rental management, the maintenance of buildings and the remuneration of the management company and its employees.
1. The internal rate of return (TRI) measures the profitability of the investment in the SCPI by taking into account the evolution of the share price and the income distributed over the period. The SCPI distribution rate is the division of the gross dividend, before withholding tax and other taxes paid by the fund on behalf of the partner, paid for the year (including exceptional advance payments and shares of distributed capital gains) by the subscription price on January 1 of the year. Objectives based on the achievement of market hypotheses established by the management company, in no way constituting a promise of yield or performance.
2. Other fee categories apply to subscribers, you should refer to the information note before making any investment decision.
3. These buildings do not correspond to buildings acquired by SCPI Elevation Tertiom and do not prejudge future investments.
THE TRANSPARENCY COMMITMENT
The SCPI presents a capital risk and a liquidity risk. On the associated risks, refer to the legal documentation of the SCPI and in particular its information note. The SCPI Elevation Tertiom information note received from the Financial Markets Authority SCPI visa n°24-13 dated 07/23/2024. It is available on simple request from the management company or on the sites : www.elevation-cp.com et www.inter-invest.fr.
