Does Digital Transformation Impact Scpis?
The world of real estate investment has taken a decisive digital turn in recent years. Meetings at the bank and paper contracts are gradually being replaced by online platforms, electronic signatures, and instant payments. This digital transformation in the real estate sector also affects civil real estate investment companies or SCPIs. Explanations.
A real estate sector increasingly digitized.
Long associated with traditional market practices, the real estate investment sector is undergoing its "digital revolution". The purchase of shares, once administered within banking institutions in paper contract format, can now also be done through online platforms.
As a result, savers no longer need to go to the bank to subscribe to shares of SCPI.
The use of online platforms by real estate investment trusts (SCPIs) illustrates this digital transformation of the real estate sector. These platforms allow investors to subscribe to shares, monitor the performance of their investment, and track the evolution of their savings in real time.
SCPIs that prioritize transparency.
From reasonable entry fees to almost no management constraints, the new generation of SCPIs assert their positioning. By delegating management to professionals in the sector in exchange for management fees, investors do not have to manage the real estate assets in which they invest, unlike traditional rental property investment.
Thanks to online platforms, they can also closely monitor the evolution of their investment. The digital transformation thus impacts the universe of SCPIs by offering investors a digital, interactive, and ultimately transparent view of their investment.
For example, the young SCPI Iroko Zen, launched at the end of 2020, plays the transparency card by keeping its investors informed through various means:
- Sending email updates on the latest news from the real estate investment company (acquisitions, renovations, product news, and newsletters).
- Sending quarterly bulletins summarizing the performance of the SCPI.
- Organizing biannual webinars allowing investors to interact with the Iroko team and get answers to their questions.
- Holding a large annual general meeting remotely to allow associates to participate in the company's strategic decisions.
Simpler and smoother operation
Beyond the production of newsletters, online data, webinars, and the use of chatbots, the impact of digital technology on real estate investment trusts (REITs) goes beyond improved communication with investors.
On the REIT side, digital tools help simplify administrative procedures and, more generally, make informed decisions through data analysis.
For example, they use technology to automate administrative processes such as rent collection, document management, and communication with investors.
Data analysis, in turn, allows for a better understanding of real estate market trends and more relevant investment decisions. With the help of new digital tools, REITs seem to have a bright future ahead.
Did you know?
Proptech, or property technology, refers to the use of technology to innovate and improve various aspects of the real estate sector. Booming in popularity, proptech aims to make real estate processes more efficient, accessible, and transparent.
Before investing, here are a few things to know:
Buying shares in a SCPI is a long-term real estate investment. The recommended investment duration is over 8 years.
Like any investment, this one carries risks. The invested capital and income are not guaranteed: they depend on the evolution of the real estate market and the timely payment of rent by tenants.
Liquidity and redemption of shares are not guaranteed.
Past performance is not indicative of future results.
The information presented above is neither a contractual element nor investment advice.
Please refer to the Iroko Zen information memorandum and key information document before making any investment decisions. This is an advertising communication.