The German real estate property management arm of French bank BNP Paribas, BNP Paribas Real Estate Investment Management, and Cording Real Estate Group have joined forces to launch a value-add fund targeting €150 million.
The pair have already raised more than a third of the open-ended Real Value Fund’s initial equity target, and have acquired their first asset, Media Tower in the Dusseldorf Media Harbour.
The building has 18 floors and approximately 96,875 square feet of multi-use space. This includes 4,306 square feet of restaurant space on the ground floor, 81,805 square feet of office space on the upper floors and more than 8,611 square feet of storage space on the lower floors, as well as 115 parking spaces.
The property is currently only approximately 50 percent occupied after the expiry of some leases, with the average remaining term of the remaining leases only 2.8 years.
London-based real estate investment manager Cording plans to reposition and renovate the property, which is expected to provide the opportunity for a significant increase in cashflow and value through leasing the vacant space.
“Over time, many core properties have become value-add buildings with vacant space and renovation needs. We acquire these kinds of properties and apply our proven management approach to reposition them,“ commented Rodney Bysh, joint chief executive of Cording Real Estate.
“Traditional core real estate increasingly fails to meet the return expectations of institutional investors because of movements in real estate prices. For that reason there is a great interest in non-core properties that can be developed into core properties,” added Reinhard Mattern, chairman of the management board of BNP Paribas REIM Germany.
If you do not receive this within five minutes, please try to sign in again. If the problem persists, please email: 
