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BNP Paribas raises €500m at final close of Euro core fund

The Paris-headquartered (pictured) investment manager already has allocated 50 percent of the fund’s equity commitments.

The real estate investment management arm of French bank BNP Paribas, BNP Paribas Real Estate Investment Management (REIM), has announced the final close of its second pan-European core office vehicle, Next Estate Income Fund (NEIF) II. 

A BNP Paribas spokesman said the firm had already concluded several deals in Paris, Luxembourg, Dublin and Milan, on behalf of the vehicle. The spokesman also confirmed that commitments in excess of €500 million would be deployed in brand-new or recently constructed properties in the key Eurozone office markets. 

In April, BNP Paribas REIM received €80 million in capital commitments from Belgian, Spanish and French pension funds and insurance companies for NEIF II. Last November, the firm received an additional €320 million, this time from Italian and French insurance companies.

Henri Romnicianu, head of capital raising for pan-European funds, said: “This very successful final closing strengthens the international profile of the fund with investors coming from the Netherlands, Belgium, Luxembourg, France, Ireland, Italy, and Spain. The NEIF funds perfectly meet the requirements of pension funds and insurance companies looking for income-driven strategies.”

“Core European investments continue to present attractive investment opportunities particularly against the current uncertain economic background. We are determined to continue to offer new investment solutions in this highly-demanded market,” he added.

Laurent Boissin, fund advisor, said: “After this final closing the investment capacity of NEIF II will exceed €800 million. Since the launch of the fund, NEIF II has already allocated 50 percent of the equity commitments and will further expand its investment activity in the Eurozone over the next few months considering properties of up to €150 million per asset.”

In December, BNP Paribas REIM announced it had invested outside of its domestic market on behalf of German insurer Gothaer Group. The firm said it had established a €600 million separate account with the insurer which it intended to invest in commercial properties across Europe, excluding Germany.

Last September, BNP Paribas REIM joined forces with Cording Real Estate Group to launch a value-add targeting a capital raise of €150 million. The joint venture made its first acquisition that month too, with the purchase of the Media Tower in the Dusseldorf Media Harbour.