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BNP Paribas REIM gains €600m German separate account

The German investment manager will invest in European commercial real estate outside of its domestic market on behalf of German insurer the Gothaer Group.

The German real estate property management arm of French bank BNP Paribas, BNP Paribas Real Estate Investment Management, has established a €600 million separate account with German insurer the Gothaer Group.

BNP Paribas REIM will invest the capital in commercial properties throughout Europe but excluding Germany.

The projected portfolio will consist of office, retail, hotel and logistics properties, with individual investments ranging between €20 million and €80 million. The strategy will be predominately core and core-plus properties, but BNP has the capacity to do individual value-add deals over the next three to four years.

“In the mid-term, we intend to expand our real estate ratio to 10 percent,” commented Christof Kessler, chief executive of Gothaer Asset Management. “With this projected European portfolio, we aim to expand our real estate investment, to diversify and simultaneously, to increase the overall return on our real estate assets.”

Currently, the Gothaer Group owns €2.3 billion of real estate with an allocation to the sector of 7.2 percent.