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OPPCI

LB-P ASSET MANAGEMENT OPPCI

The OPPCI, is a non listed professional real estate investment fund and a regulated investment vehicle in real estate. The latter combines flexibility of asset composition with an advantageous tax system. The OPPCI is a financial instrument secured by its membership and structuring resulting from the OPCs. In its professional version reserved qualified investors, OPPCI can adapt its governance and operating mode to its investors’ needs.


FLEXIBILITY IN THE ASSETS’ COMPOSITION

The OPPCI’s assets may be composed as follows:

  • Real estate assets held directly or indirectly
  • Shares of unlisted partnerships with a majority of real estate assets
  • Shares of unlisted private companies with a majority of real estate assets
  • Financial products not necessarily related to the financial sector
  • Cash flow

The OPPCI must respect a minimum investment in real estate assets, in France or abroad, up to 60% of the portfolio. In the case of OPPCI s, there is no constraint in terms of level of debt. However, the vehicle must be able to balance its operation, while its shareholders must ensure its sustainability.

The OPPCI’s composition allows asset diversification and a risk reduction, with an adjustment of the portfolio to the real estate and financial situations.

SIIC TAXATION SYSTEM

Unitholder-level taxation. OPPCI income is exempt from both corporate income tax and capital gains tax, yet subject to a distribution obligation of at least :

  • 85% of real estate income
  • 50% to 85% of net capital gain, depending on the shape of the OPPCI (SPICCAV or REIT)

 

SECURED MANAGEMENT

OPPCI governance is regulated by a number of actors in charge of its operation and control:

  • A portfolio management company ensures management
  • A custodian, whose mission is both to conserve and control
  • Two evaluators carry out, both simultaneously and independently, the half-yearly expertise of the real estate assets
  • A Supervisory Board or an Investment Committee controls the management methods
  • The French Autorité des Marchés Financiers(i.e., by the French Financial Markets’ Authority) approves and controls the OPPCI and the management companies
  • The Auditor controls and certifies the OPPCI accounts and periodic information

 

CUSTOMISED OPERATING PROCEDURES

LB-P Asset Management is an independent management company specializing in real estate and finance, and offering a customized investment strategy.

The OPPCI is an optimized vehicle of asset ownership tailored to each type of investor:

  • Institutional in search of an efficient management framework
  • Company (taxation, outsourcing, withdrawal from listing...)
  • Family (heritage transmission, taxation)

OPPCI offer a great deal of leeway in terms of real estate transactions and investments. They allow a contractual management with investors, suited to their asset allocation needs:

  • Possibility of fractional release of subscriptions
  • Possibility of varying the capital
  • Possibility of temporarily blocking the redemption of shares
  • Cash flow needs integrated into asset allocation models

Our team holds all the expertise to run a personalized study, while maintaining the necessary levels of confidentiality specific to patrimonial approach.