Chapter IV: Collective investments

The purpose of non-trading property investment companies (sociétés civiles de placement immobilier) is the direct or indirect acquisition and management of property assets for rental purposes, including those in a future state of completion. In accordance with the conditions laid down by decree of the Conseil d’Etat, the purpose of non-trading property investment companies is also to acquire and manage properties that they have built exclusively for rental purposes. For…

I. – Under the conditions laid down by decree of the Conseil d’Etat, the assets of a société civile de placement immobilier consist exclusively of : 1° Buildings constructed or acquired with a view to letting and rights in rem relating to such property and listed by the Conseil d’Etat decree referred to in the previous paragraph; 2° Shares in partnerships which are not admitted to trading on a market…

At least 15% of the maximum capital of non-trading property investment companies, as set out in their Articles of Association, must be subscribed by the public within one year of the opening date of the subscription period. If this obligation is not met, the company is dissolved and the shareholders are reimbursed for the amount of their subscription.

With the exception of the cases provided for in articles L. 214-66 and L. 214-76, a société civile de placement immobilier may only merge with another société civile de placement immobilier managing assets of a comparable composition. The conditions for the application of this article are set by the decree mentioned in article L. 214-121.

In accordance with the conditions laid down by decree of the Conseil d’Etat, a société civile de placement immobilier may transfer its assets and liabilities by way of demerger to undertakings for collective real estate investment, whatever their form. As an exception to article L. 214-114, prior to the demerger, non-trading property investment companies are authorised, where appropriate, to contribute all or part of their assets to new non-trading companies,…