Among the many investment opportunities, SCPIs focusing on healthcare are becoming increasingly popular, and for good reasons. A healthcare SCPI provides a comprehensive range of estates that offer a remarkably interesting return. A true real estate asset, the health SCPI represents a dynamic market that is constantly evolving, giving the possibility to foresee its future serenely.. In the following lines, we will explain why and how you should invest in a healthcare SCPI.
What is a healthcare SCPI?
A healthcare SCPI (Société Civile de Placement Immobilier de Santé) is a real estate investment solution whose assets consist exclusively of healthcare institutions such as laboratories, nursing homes, nurseries, clinics, medical centers, and many others.
Healthcare structures are essential, as we were well reminded by the health crisis: envelopes are provided every year for the development of infrastructure, and we must bear in mind that healthcare facilities are safe assets that cannot disappear.
Furthermore, in 2021, Jean Castex had announced the setting up of a €6 billion budget envelope in the healthcare sector, and 30,000 extra beds are expected to be created in EPHADs (French retirement homes for dependent residents) by 2030. This means that the healthcare sector is meant to develop further, to the point of making it safe in terms of real estate investment.
However, it must be understood that healthcare SCPIs are divided into several sectors and that three of them in particular are very interesting: pathology detecting structures, pharmaceutical or hospital companies, as well as businesses focusing on lifestyle improvement.
Why invest in a healthcare SCPI?
Investing in a healthcare SCPI, which is called a thematic SCPI because of its specific sector, benefits those wishing to make a safe and sustainable investment. And above all, it gives them the chance to invest in a promising market, full of opportunities and usually reserved for healthcare professionals.
Investing in a healthcare SCPI offers quite an efficient return (around 5%). This argument alone explains why this real estate investment has become so popular in recent times, especially given the very low return rates of traditional bank savings products such as passbook savings accounts.
Besides, making this type of investment through a management company approved by the AMF represents significant security and serenity: you delegate the management of your investment, which prevents much paperwork.
Finally, investing in healthcare SCPI is a way to diversify and enhance your wealth. Thus, demographic data show that the longer life expectancy of residents in healthcare facilities, together with the difficulty to transfer them given the lack of existing structures, make healthcare SCPIs a reliable long-term investment.
Generally speaking, this type of investment offers great performance and very satisfactory returns. Every year, capital investment in healthcare SCPIs represents billions of euros.
However, it should be noted that even if this sector is promising, the investment period is seldom less than 8 years, and that SCPIs are subject to the various fluctuations of financial markets. It is better for you to be accompanied by a professional such as a management company in order to succeed in your investment in healthcare SCPI.
How to successfully invest in healthcare SCPIs?
If you are interested in investing in the promising sector of healthcare SCPIs, you should know that there are very nice examples in this area. Indeed, some healthcare SCPIs are true economic models, and before telling you how to embark on this venture, here is a small overview of the best healthcare SCPIs:
- SCPI Pierval Santé: this healthcare SCPI, owned by Euryale Asset Management, was valued at the end of 2020 at almost 130 buildings and 1.4 billion euros in capital. With an investment strategy spreading across 7 European countries, Pierval Santé can expand to many healthcare institutions such as clinics or medical consulting centers across Portugal, the Netherlands, Germany, England, Ireland, or Spain. In 2020, SCPI Pierval Santé posted a 4.95% return rate.
- SCPI Primovie: with a 4.50% return rate in 2020, an equivalent of 3.2 billion euros in capital and a real estate portfolio established in 4 countries, namely France, Germany, Italy and Spain, SCPI Primovie, set by Primonial Reim management, offers the prospect of a safe investment. Thanks to a portfolio that mainly includes healthcare and senior buildings, nurseries and private schools, SCPI Primovie is one of the most popular in France among those wishing to safely invest in healthcare SCPI.
Of course, there are other healthcare SCPIs that offer decent returns and the opportunity to build up a comfortable amount of capital in the long term.
To succeed in your real estate investment, you should first compare the best healthcare SCPIs on the website www.centraledesscpi.com. This is a crucial step given the complexity of investing in thematic SCPIs. That is why it is strongly recommended that you get in touch with a management company.
Indeed, it is not only a question of comparing return rates but also of taking into account the occupancy rate, the number of leases as well as other crucial data, such as the SCPI’s capital. For instance, one of the most important conditions for an interesting investment is to turn to a healthcare SCPI whose occupancy rate exceeds 90%.
To invest with confidence and choose your healthcare SCPI, surround yourself with a professional who knows the market by heart. Every day, our management experts assist many investors wishing to diversify and grow their savings, in a secure and sustainable way. Why not you?