BNP Paribas Real Estate Investment Management (REIM) Germany boosted its transaction volume to €1.3 bn in 2016, an increase of 33% on the €975 mln of trading the year before.
The strong volume increase reflected the continued popularity of real estate investments in Germany as well as in other European countries among German and foreign institutional investors, the investment manager's German business said in a statement.
'We expect to see an ongoing favourable trend on the German property market in 2017 and our business to continue to grow accordingly, says Reinhard Mattern, CEO of BNP Paribas REIM Germany.
'The addition of new, innovative products and services to our product range will play a particularly important role in this. However, issues such as Brexit, the new US administration and the elections in France and Germany could influence the market. Real estate investments are highly likely to remain popular among institutional investors in particular in view of the current interest rate environment.'
Transaction volume has increased both buy and sell side. Investors were slightly more active buy side with regard to existing and new capital commitments. BNP Paribas REIM Germany singled out the acquisition of 'Nove by Citterio' at Munich Arnulfpark as one of the most prominent transactions on the Bavarian state capital market in
2016.
The ongoing internationalisation and diversification of products and services was a key theme for BNP Paribas REIM Germany. The Munich-based real estate asset manager has in recent years regularly assisted Asian and Middle Eastern investors in their German investments. Recent examples include two acquisitions in Hamburg and Düsseldorf.
More than a quarter of transactions carried out in 2016 was made on behalf of foreign investors and BNP Paribas REIM Germany continued to expand its activity in the relatively new field of hotel investments. Following the three hotel transactions carried out in 2016, this segment will become increasingly important in 2017, the company said.
BNP Paribas REIM Germany manages around €5 bn allocated to 14 special funds, two Luxembourg vehicles and five separate accounts for institutional investors.
