An unnamed German Versorgungswerk has mandated BNP Paribas REIM Germany to set up a real estate Spezial-AIF with an initial €120m target volume.
The Service KVG noted in a statement that the investor was looking to “significantly increase the real estate exposure in the portfolio with this step”.
Quantum Immobilien KVG was chosen as asset and portfolio manager for the fund, which is focusing on the office, retail and residential sectors in Germany’s seven largest cities.
At least half of the invested volume will be allocated to the regions, BNP Paribas REIM confirmed.
The manager will take on risk management and reporting, as well as set up and administer the fund.
Diversification into selected medium-sized Germany cities and other European cities is possible.
Quantum said it has made a first purchase for the fund, closing a forward-deal structure to acquire a Berlin residential project with 200 units in the city’s Mitte district, due for completion by 2017.
Reinhard Mattern, chairman of the board at BNP Paribas REIM Germany, which manages €4.5bn – most of it divided among 12 Spezialfonds and two Luxembourg vehicles for institutional investors – said: “Indirect real estate investments are among the preferred alternatives for institutional investors in the current low interest rate environment.”
Quantum Immobilien KVG manages around €3.8bn in real estate assets, one-third of which is for individual fund mandates.