Diversipierre fund: The first residential property

BNP PARIBAS REIM ACQUIRES IN GERMANY THE FIRST RESIDENTIAL PROPERTY FOR ITS BNP PARIBAS DIVERSIPIERRE FUND
 

BNP Paribas Real Estate Investment Management (BNP Paribas REIM) recently acquired a residential asset for its open-ended mutual fund BNP Paribas Diversipierre. The target property is a state-of-the-art residential complex located in Hamburg’s Bergedorf district in Germany. The asset was sold by the HT Group based in Hamburg.

The transaction is intended to achieve two strategic goals targeted by the fund’s management for 2022: building a residential asset portfolio for the fund and strengthening regional diversification in the target region of Europe. The acquired portfolio encompasses six multi-family buildings with 5 to 6 storeys each and features 155 apartments, a total area of around 13,000 sqm and 138 parking spaces. All apartments were completed in 2010, have universal access, come with high-end fixtures and fittings, including built-in kitchens and balconies, and were designed with young couples and families in mind.

The property’s high environmental standard was a key consideration in the fund’s investment decision as BNP Paribas Diversipierre makes its investments while taking into account ESG criteria (environmental, social and governance). Tenant energy consumption is already close to complying with the KfW 60 standard, which is half the average consumption of German households. The fund plans to upgrade the property through targeted sustainable living investments, including installing photovoltaic systems on the roofs and applying for sustainability certification.

“Residential assets are a vital addition to the BNP Paribas Diversipierre portfolio. Strong demand for housing even during the pandemic and sustainable cash flows bring more than just stability to the overall portfolio. This residential complex in Hamburg-Bergedorf with its upside potential in terms of sustainability and with rent prices still below the market average represents a particularly attractive opportunity to combine social and environmental responsibility,” says Isabella Chacón Troidl, Chief Investment Officer of BNP Paribas REIM Germany.

“This investment is a great achievement for our OPCI BNP Paribas Diversipierre, being the first residential asset directly held by the fund since its inception in 2014. Such a deal perfectly fits the fund strategy, whose aim is to offer a highly diversified portfolio across the Eurozone with excellent Real Estate fundamentals,” says Jean-Maxime Jouis, Global Head of Fund Management & Private Investors of BNP Paribas REIM.

BNP Paribas Diversipierre fund, compliant with Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Regulation), was launched in 2014 and was awarded the French sustainability ISR Label in 2020. As at year-end 2021, the fund portfolio comprised 31 properties across different asset classes with an overall fund volume of more than €2.5 billion. In addition to residential properties, the fund’s agenda for 2022 includes logistics, healthcare, offices and life sciences assets.

The buyer was advised by Clifford Chance, Drees & Sommer, GreenAffair and TAUW. Colliers brokered the deal for the seller with Norton Rose Fulbright acting as legal advisor.