10 September 2014
Certivia is a fund that buys properties on a "viager" basis, which means that the owner receives a lifetime annuity in exchange for the sale but retains the right to remain in the property until death. It was launched in early September 2014 by Caisse des Dépôts and a group of institutional investors, including CNP Assurances.
It provides one solution to the issue of an ageing population. By releasing the equity held by elderly people in their homes, it not only provides them with extra income but also helps to keep them in their homes.
Today, 72% of people aged over 70 own their own home.
How does it work?
In a classic "viager" arrangement, the purchaser is a person. In Certivia's case, it is the fund – owned by institutional investors – that purchases the property and pays the elderly person a capital sum plus the lifetime annuity. So with Certivia, there is no longer a direct relationship between two individuals, which can be off-putting for both seller and purchaser.
Through its structure, the fund also guarantees a high ethical standard, providing further reassurance for elderly people who are tempted by the scheme.
The fund has a capital of €120 million, to which CNP Assurances has committed €20 million.