Funds for Institutional Investors
BNP Paribas Real Estate Investment Management (BNP Paribas REIM) provides both closed-end and open-end institutional funds. These allow a diversified exposure to the European real estate market or the targeting of particular sectors and geographies. We also provide tailor-made investment solutions.
We manage approximately €9B* of European real estate assets in our funds for commingled investors and club deals. These account for around a third of our total assets under management, which are spread across 17 countries. On behalf of our clients, we invest in the main real estate segments, including office, residential, retail, industrial/logistics, hotel and healthcare properties, which are becoming a growing priority.
We are a trustworthy and long-term partner for Institutional investors across Europe. Our daily challenge is to delve into our local market knowledge so we can offer investment solutions in Europe that match the specific requirements of each one of our clients.
- Henri Romnicianu, Global Head of Institutional Sales BNP Paribas REIM
We favour a conservative approach to investing and a focus on delivering long-lasting returns for our clients. Our work to enhance a property’s income through active asset management is shaped by our approach to sustainability. As a responsible investment manager, we regard this as critical in protecting the long-term value of an asset.
Providing Innovative Investment Solutions for Clients
A wealth of research from a variety of sources underscores our decisions and helps us make the right investments for the real estate cycle. Our research experts analyse the secular trends and external factors – such as geopolitical and macroeconomic change – that may affect the performance of an asset.
BNP Paribas REIM uses active management to create value. Our strong commitment to improving the environmental performance of buildings is an integral part of our risk-adjusted approach to delivering consistent returns to investors.
We provide three main strategy types in our funds for institutional investors: diversified core, core sector-specific and value-added. Each has its own investment scope and risk profile. Our expertise in all of Europe's real estate sectors serves as the foundation for all three strategies.
Diversified Core Funds: Diversifying Risk and Lowering Return Volatility
Core and core-plus strategies make up most of the assets that we manage. Diversified core funds provide institutional investors with broad exposure to European real estate across multiple property sectors.
These strategies are a popular choice for many institutional investors, as they provide a mix of assets that can help reduce portfolio risk.
Such strategies benefit from both a top-down and a bottom-up approach – enabling fund managers to create sustainable, long-term performance. We believe this combination of a broader perspective and on-the-ground expertise is key to the success of a diversified real estate portfolio.
Core Sector-Specific Funds: Innovative Strategies for Clients' Needs
We have been providing innovative, risk-adjusted, sector-specific solutions to suit clients' needs for more than 50 years. Our core sector-specific strategies are designed for investors who want to focus on a particular theme or who wish to use geographical diversification to achieve a specific investment objective.
One example is our strategy to capture the growth prospects in logistics warehousing as e-commerce transforms the supply chain, most notably in retailing. Another is our strategy to provide institutional investors with a recurring income return with low volatility by investing in offices in the fastest-growing European cities for occupier demand and transaction activity.
Value-Added Strategies: Managing Risk-Return Profiles
We manage around €2B* of European real estate assets for private and institutional investors in our value-added strategies. Our market coverage and expertise allow us to be efficient in seizing investment opportunities of varying scale and complexity in this space.
Value-added institutional funds are defined by a higher risk profile and by the level of asset management needed to produce stable returns. An example of this is the time required to manage a development project through to completion and to lease up a new building. Our local market knowledge enables us to understand a building's fundamentals so that we can underwrite investments and manage an asset in line with investors' requirements.
* As of 31st December 2020