BNP Paribas Asset Management (BNPP AM) has raised more than €700m for its second senior commercial real estate debt fund.

The manager said the amount raised for BNP Paribas European Real Estate Debt Fund II, exceeded the fund’s €500m target.

Fund II’s predecessor closed in April 2021, with €335m of capital now fully deployed across 12 assets in continental Europe.

The fund has so far been deployed across 19 transactions in Continental Europe, in the logistics, office and residential sectors.

The latest fundraising brings BNPP AM’s total assets in senior real estate debt to more than €1bn across two funds, the manager said, adding that a junior debt strategy is planned for later this year.

Christophe Montcerisier, the head of real estate debt at BNP Paribas Asset Management, said: “We are enjoying strong asset-raising momentum for our second senior fund and are looking to diversify our product offering with the launch of a junior debt fund.

“In the post-pandemic environment of increased volatility, rising interest rates and mounting inflationary pressures, now is an appropriate time to invest in real estate debt.

“It offers both attractive returns, especially relative to equity, and defensive investments backed by properties that provide inflation-linked cash flows, with a significant equity cushion.”

Laurent Gueunier, the head of real assets, SME lending and structured finance at BNP Paribas Asset Management, said the large size of the commercial real estate debt market, with around €250bn of origination each year, offers wide-ranging opportunities to deploy capital selectively.

“As banks undergo additional constraints, investment opportunities will increase further.”

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