BNP Paribas Real Estate Investment Services has announced the launch of a new pan-European fund after having raised €150 mln of equity commitments at first closing.

BNP Paribas Real Estate Investment Services has announced the launch of a new pan-European fund after having raised €150 mln of equity commitments at first closing.

Next Estate Income Fund II focuses exclusively on offices and aims to achieve a 5% distribution every year.

With leverage of up to 40%, the vehicle has a spending power of €270 mln and, over time, is targeting a size of up to €800 mln. The next closing date is expected in Autumn 2014.

'The objective of NEIF II is to form a pan-European portfolio of modern office properties, which are of very high environmental quality, let to Grade A tenants,' said Laurent Boissin, fund manager of NEIF II at BNP Paribas Real Estate Investment Services. 'By offering a diversified portfolio of core office properties in the Eurozone, this vehicle is mainly aimed at European institutional investors benefiting from limited access to this type of asset.'

The priority target markets are the five largest German cities and the Paris region, he added.

NEIF II is the successor fund of NEIF, which has invested a total of €300 mln in two DGNB Silver-labelled buildings in Germany, an HQE building in Paris and more recently, two buildings in Milan and a building in Brussels.