Strategic View: Real estate club deals gain traction in France as pooled capital vehicles. Investors access institutional-quality assets through selective syndication. Transparency and governance rights differentiate from traditional SCPIs. Value-add and income strategies dominate across hospitality, office, and student housing.
Full story: French investors are discovering a powerful new tool. Real estate club deals are reshaping the market. They’re not your typical investment fund. Club deals bring together 10 to 50 select investors. Each knows exactly what they’re buying. Transparency is the foundation. Participants see the building, the location, the strategy. They get governance rights. This matters to sophisticated capital.
Traditional SCPIs offer diversification but lack specificity. Club deals flip this model. Investors choose each opportunity individually. A SCI or SAS vehicle houses the investment. Capital contributions flow proportionally. The sponsor identifies targets and manages assets. Regular reporting keeps everyone informed. Two strategies dominate: capitalization deals seek buy-fix-sell gains. Distribution deals prioritize stable rental income. Both have found eager buyers.
Why now? Traditional fixed income yields nothing. Government bonds offer minimal returns. Inflation erodes purchasing power. Real estate provides an alternative. French examples are compelling. Supermarket portfolios leased to investment-grade tenants. Renovation projects in growing regional cities. Paris hotels riding the tourism wave. Tax advantages sweeten the deal. The 150-0 B ter regime exempts certain capital gains. PEA wrappers enhance after-tax returns. Club deals now compete directly with SCPIs and direct ownership.
Summary: French real estate club deals offer sophisticated investors a middle path between passive SCPI funds and direct property ownership. The model combines institutional-quality deal flow, transparent asset selection, governance participation, and tax efficiency—creating a compelling value proposition in a low-yield environment.
Source: Mon Cercle Immo
