French property funds expand investments in Europe

French SCPIs (real estate investment funds) are increasingly investing in Central and Eastern Europe, and showing initial interest in the Nordic region, according to Savills. 

Emma Steele and James Burke

Simultaneously, they are also growing their investments in established markets like the UK and Spain.

This shift is driven by stronger market conditions and a desire for diversification. After a dip in April 2025, the SCPI performance index rose 3.3% by January 2026, indicating stabilising values and income. Total returns hit 6.3% in 2025 (up from 5.9% in 2024), thanks to steady rental income and slowly recovering capital values.

Improved performance has reignited investor interest, leading to €4.5 bn in net inflows in 2025, a 44% increase year-on-year, with a strong fourth quarter. Much of this capital went to international or pan-European SCPIs like Transitions Europe, Corum Origin, and Iroko Zen, each attracting over €500 mln, highlighting investors' focus on geographic diversification.

Savills also notes increasing exploration of the Nordic markets, suggesting growing interest in Scandinavia despite currently limited activity.

Emma Steele, director, Global Cross Border Investment at Savills, commented: “Geographically, the UK remains a priority destination for SCPIs given the depth of opportunity, liquidity and ability to purchase within a short timeframe. Traditional sectors will continue to remain in favour, but we expect to see expansion into alternative operational assets this year as well.”

James Burke, director, Global Cross Border Investment at Savills, added: “The most notable recent development for SCPIs is the acceleration of activity in Central and Eastern Europe, with Poland standing out as a key target market. In terms of asset classes, there have been a number of logistics and hotel transactions. These include Epsicap’s acquisition of the 7R City Flex logistics asset in Poznań and Remake’s purchase of four B&B hotels located across Poland, and a logistics facility in Wolbórz. Offices continue to attract investment, with Arkéa, on behalf of Transitions Europe, deploying in the Brain Park A office building in Kraków.”