BNP Paribas REIM has acquired the 'Fantastic 44' office development in Dusseldorf as the first asset for the Next Estate Income Fund III.
The vendor in the off-market transaction was Die Developer Projektentwicklung (DDP) and the financial details were not disclosed.
The first acquisition of the fund is located in Kennedydamm, an established submarket of Dusseldorf. 'Fantastic 44' has a lettable area of 2,500 m2 and will be delivered in Q4 2017 with a DGNB Gold certification. It is almost 70% pre-let to two solid tenants, including a leading US software company.
NEIF III has a target size of €1.8 bn and the aim is to create a pan-European portfolio of modern, 'green' office properties let to highly rated occupiers. The NEIF III fund will invest throughout the Eurozone and targets an annual distribution over 4%.
Fund adviser Laurent Boissin said: 'NEIF III will provide institutional investors with strong diversification benefits in the key cities of the eurozone. Depending on the submarket liquidity, the fund will target assets in the range of €30 to €250 mln.'
BNP Paribas REIM has raised over €750 mln of equity and acquired 16 assets for €1.2 bn on behalf of the first two funds of the Next Estate strategy.
