Among the tangible investment vehicles, Groupements Fonciers Forestiers (GFF) or Groupements Forestiers d'Investissements (GFI) are experiencing a real boom. We have noticed that clients are increasingly vigilant in their diversification, hence the appearance of these investments that can be considered responsible.

But what are they in concrete terms?

The GFF, born in 1954, is at the origin of everything. Its aim was to conserve, improve and even promote the reforestation of the territory in the long term. This legal structure, limited in the number of investors and the amount of funds outstanding, has reached its limits. This is why the State adopted in 2014 article L331-4-1 of the Forestry Code, subsequently amended in 2019, which allows the creation of GFIs. This legal regime allows for more flexibility in the operation, notably greater liquidity of shares, fewer restrictions on the associates and the amounts collected. As a result, GFIs have a better diversification of the forestry stock. The GFI is subject to Article L214-24 and requires a VISA from the AMF prior to marketing. Its statutes are similar to those of the SCPI (Société Civile de Placement Immobilier).

Why is it so popular?

As clients are increasingly looking to give meaning to their investment, it is only natural that investments in real estate are experiencing real growth. After the democratisation of SCPIs, we are now witnessing a resurgence of financial supports considered as "green" according to the SFDR criteria. Despite these regulations, some of us want to know exactly what our money will be used for. The Groupement Foncier d'Investissement and, to a lesser extent, the Groupement Foncier Viticole meet these expectations!

There are real opportunities to be seized!

In addition to the obvious virtues of these funds, the State wishes to preserve its forestry heritage and encourages these schemes through tax provisions. This can be done through a reduction in income tax, an allowance in the context of an inheritance or by benefiting from Article 150-0 B Ter, which concerns capital gains on the sale of securities.

This investment must be part of a global asset strategy and requires the analysis and support of a professional. The Wealth A7 team of Asset Management Advisors is there to advise you, contact us!

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