Benefits and risks

What are the advantages of the CORUM SCPI?

Easy access to real estate investment

With a minimum investment of €1,060 (one share) since 1 June 2016 (including all costs), you can invest in the SCPI at your own pace, depending on your savings capacity. The SCPI is an ideal tool to indirectly own a piece of property, without the hassle of managing it.

You can also borrow money to buy shares. This is an attractive solution in today's environment of low bank interest rates. Any monthly income you receive from the CORUM SCPI can help you cover part of the loan instalments.

However, you should bear in mind that if the shares you bought with borrowed money do not provide sufficient income to repay the loan, or
in the event of a price decline when you seek to sell your shares, you will have to pay the difference.

Benefit from diversification across all the commercial real estate sectors of the eurozone

The CORUM SCPI's investment universe is deliberately broad. It includes 8 eurozone countries and all the components of commercial real estate: office, retail, hotel… with the objective of focusing on assets that present a potential for dividend distribution of 6%: for instance, the Novotel hotel in Amsterdam, a building leased to Deutsche Bank in Frankfurt, the SinnLeffers department store in Germany...

This broad diversification helps spread the risk over the SCPI's property portfolio. This advantage is supported by the expertise of CORUM's asset managers in selecting real estate assets and analysing tenants.

Invest for the long term

CORUM SCPI gives you access to long-term real estate investment. As with any investment of this nature, resale is subject to the existence of a buyer, which means that this investment has limited liquidity. Therefore, we recommend you to hold your shares for 8 to 12 years.

Invest with confidence

Ever since its creation, CORUM has always had the interests of its investors in mind. This is why we offer you transparent information about the CORUM SCPI throughout the year:

  • each month, you receive a text message announcing how much of a dividend you will get and when it will be transferred to your bank account

  • each quarter, you receive a newsletter presenting the key indicators for the period: dividend per share, earnings, number of tenants, average remaining lease term to first break, occupancy rates...

  • upon each acquisition, you receive an email about the characteristics of the property (price, yield, location, tenant, lease term...)

  • each year, you receive the annual report 

  • a General Shareholders' Meeting is held at least once a year.

What precautions should be taken before investing?

The risk attached to the CORUM SCPI is equivalent to that of any property investment. The main risks are related to changes in the real estate markets.

Income not guaranteed, risk of capital loss

The potential income and the value of CORUM SCPI shares can rise as well as fall. They depend on the economic conditions and situation of the real estate market, in particular how easily and under which terms the properties can be rented and where they are situated.

Investments and any income from it are not guaranteed. They depend on the trends in the real estate market during the investment period.

Risk related to the SCPI's debt

The SCPI may use debt up to a maximum amount determined by the General Meeting and indicated in the prospectus. The Management Company is not authorised to borrow more than 40 % of the sum of the estimated value of properties and the inflows (net of expenses) recorded but not yet invested.

The use of debt by the SCPI may increase the risk of capital loss. Upon liquidation, any amounts to be received by the shareholders are subordinated to the repayment of the outstanding or full amount of any loans taken out by the SCPI.

Risk related to investing with borrowed money

If they borrow money to buy CORUM shares, investors should bear in mind that they may experience difficulties in meeting their interest obligations or in repaying the principal amount of the loan in the event of a downturn in real estate prices. Also, loan interest payments might not always be deductible from property income tax.

If shares bought with borrowed money do not provide sufficient income to repay the loan, or
in the event of a price decline when the investor seeks to sell their shares, the investor will have to pay the difference.