BNP Paribas Real Estate Investment Management (REIM) has raised a further €50m for its open-ended European office investment fund.
The manager said the Next Estate Income Fund III (NEIF III) fund’s latest capital raise, which occurred in the first quarter of the year, was backed by two new unnamed European institutional investors.
BNP REIM said NEIF III’s total commitments to date stand at €568m, giving it a total investment capacity of over €900m when factoring in leverage.
Launched in 2017, the open-ended pan-European fund follows two closed-ended vehicles. NEIF III focuses on core and green office buildings in eurozone countries.
BNP REIM said the fund already has an established asset base and a “rapid deployment timeframe”, with high visibility for new investors wishing to join the fund ahead of the next closing dates.
NEIF III’s portfolio currently consists of 11 assets under operation with an asset value of around €800m.
The manager said it has recently acquired an asset in Milan as the fund’s 12th deal, which will be funded by the latest capital raised.
“We aim to continue growing the NEIF III fund through further capital raising in the coming years. The goal is to have an asset base of over €1.5bn, said Henri Romnicianu, the head of institutional investor relations for BNP Paribas REIM.
The fund already has institutional investors from six European and Asian countries, said Romnicianu.
Dorothea Koestler, fund manager for BNP Paribas REIM, said the fund has a strong portfolio and is looking at new acquisition opportunities in major Eurozone cities.
“Our investment teams in Europe are constantly analysing the sustainable office real estate sector. Securing this latest asset in Milan is a fine example of the current momentum,” said Koestler.
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