BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

SCPI: why the French have never invested so much in paper stone

The SCPI attracted 8.6 billion euros in 2019, much more than the previous record of 2017. A craze for paper stone largely due to the yields offered, up from last year. All the indicators are green for the civil companies of real estate placement (SCPI). In 2019, savers rushed into these products by investing 8.6 billion euros, 36% more than the collection recorded in the 2017 record (6.3 billion euros). In detail, the office SCPIs (+4.4 billion euros), diversified (which invest according to opportunities, whatever the asset, +2.3 billion) and specialized (which invest mainly in a sector , like the hotel industry, the Ehpad, +1.2 billion) are the ones that benefited the most from these investments. This is followed by retail (+0.58 billion) and residential (+0.13 billion) SCPIs. These data, communicated on Thursday, February 13 by Aspim (French Association of Real Estate Investment Companies) and IEIF (Institute of Real Estate and Real Estate Savings), highlight an ever-increasing interest in paper stone. As a reminder, the acquisition of shares in SCPI consists in investing in a company which acquires and manages a building stock (offices, shops, healthcare establishments, hotels, etc.) and pays rents in the form of dividends in return.
4.40% average yield : "2019 was a particularly dynamic year for the unlisted real estate market thanks to a buoyant context and solid fundamentals," said Aspim's general delegate VĂ©ronique Donnadieu in a press release. With a market value distribution rate (TDVM) of 4.40% in 2019, compared to 4.35% a year earlier, SCPIs offer a very attractive return. In addition, the average share price appreciated by 1.20% over the period, against 0.80% in 2018. Arguments all the more convincing since paper stone benefits fully from the comparison with investments with guaranteed capital, in particular the euro life insurance fund, whose remuneration should fall on average to 1.40% in 2019. “The SCPIs benefit from the psychological impact of the drop in the rate served on the guaranteed support of the life insurance, explains Paul Bourdois, co-founder of France SCPI. In addition, SCPIs present a balanced risk / return couple. The CAC 40, if it achieved + 26% in 2019, is much more volatile ”. High interest rates, weakened competition from other investments, risk aversion on the equity markets, risk otherwise controlled so far ... everything seems to "roll" for stone.

What returns for the future? Investors should not however be blinded by the average rate served by SCPIs according to the founder of Meilleure SCPI, Jonathan Dhiver. On the one hand because "the 2019 returns result in part from capital gains distributions", he explains. Rates were thus boosted by asset sales by SCPIs, while rents are paying less than in the past. However, these capital gains are not intended to be recurrent in most SCPIs, rents representing the main source of remuneration.

In addition, more liquidity could, according to Jonathan Dhiver, be synonymous with declining rental yields under the effect of increased competition for the most attractive properties and therefore an additional purchase cost for SCPIs. The decrease in the remuneration from rents could therefore continue. “The rise in average yield is“ too much ”good news, fears Jonathan Dhiver for whom we cannot hope for an increase (in yields, editor's note) for the next few years”. Paul Bourdois, however, nuances the hypothesis of an erosion of the remuneration paid. "The depth of the market is high: the commercial property market in Europe reaches 260 billion euros". There would therefore still be great opportunities to seize for SCPIs according to him.

Savers are therefore warned and have every reason to think before taking action, in particular by checking the occupancy rates of SCPIs. Above all, they must not forget that subscribing for SCPI shares does not provide any capital guarantee and think of diversifying their investments. "You must invest a maximum of 15% of your assets in this asset," says Jonathan Dhiver.