German insurer picks BNP Paribas REIM to build up €600m package

German insurer The Gothaer Group has mandated BNP Paribas REIM Germany to build up a €600 mln real estate portfolio across Europe.

The assets will be managed through a special fund to be set up according to Luxembourg law and which will be managed by BNP Paribas Real Estate Investment Management Germany.

While the geographic focus is on eurozone countries, Germany will be omitted, the company said.

The mandate is part of Gothaer's plans to boost its real estate exposure to around 10% of its total portfolio in the medium term, according to Christof Kessler, the CEO responsible for capital investment in Gothaer Asset Management, which manages over €25 bn of assets.

The group currently manages €2.3 bn of real estate. This is equal to 7.2% of its total portfolio.

'Gothaer is increasingly concentrating on infrastructure for its capital investments, with a focus on renewable energy and real estate,' said Kessler. '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.'

As part of the mandate, which has a core and core+ risk profile, BNP Paribas REIM will focus on investment in commercial properties including office, retail, hotel and logistics, with individual investments ranging between €20 and 80 mln. The fund will be fully deployed in the next three to four years.

'Currently, German and international investors in Europe are strongly focusing their investment activity on Germany. But we see chances and would like to maximize pinpointed opportunities in other markets as well,' commented Georg Gmeineder who is in charge of the portfolio management.