October 4, 2022

BNP Paribas Asset Administration exceeds fund-raising goal for second actual property debt fund

BNP Paribas Asset Administration has introduced that it has exceeded its EUR 500 million goal for its second senior business actual property debt fund, BNP Paribas European Actual Property Debt Fund II (‘Fund II’), with greater than EUR 700 million dedicated thus far.  This brings BNPP AM’s complete property in senior actual property debt to in extra of EUR 1 billion throughout two funds.  A junior debt technique is deliberate for later this yr.

BNPP AM has seen robust investor curiosity for its actual property debt providing, which relies on a confirmed observe report, together with efficiently navigating via the Covid disaster.  Fund II capital has to date been deployed throughout 19 selective transactions in Continental Europe, within the logistics, workplace and residential sectors.

Christophe Montcerisier, Head of Actual Property Debt at BNPP AM, feedback: “We’re having fun with robust asset-raising momentum for our second senior fund and wish to diversify our product providing with the launch of a junior debt fund.  Within the post-pandemic setting of elevated volatility, rising rates of interest and mounting inflationary pressures, now could be an applicable time to put money into actual property debt.  It  affords each enticing returns, particularly relative to fairness, and defensive investments backed by properties that present inflation-linked money flows, with a big fairness cushion.”

Laurent Gueunier, Head of Actual Property, SME Lending & Structured Finance at BNPP AM, feedback:

“Primarily based on extensive and long-standing credit score and actual property experience inside BNP Paribas, the funding crew focuses on each the intrinsic high quality of actual property and correct mortgage structuring.  The massive measurement of the business actual property debt market, with round EUR 250 billion of origination every year[2], affords wide-ranging alternatives to selectively deploy capital.  As banks bear extra constraints, funding alternatives will enhance additional.”

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Fund II follows the launch of BNP Paribas European Actual Property Debt Fund I (‘Fund I’) on the finish of 2017, concentrating on senior secured loans in business actual property throughout the entire Continental European market, together with workplaces, retail, logistics, inns, working property and non-standard property.  Fund I closed in April 2021,with EUR 335 million of capital now totally deployed throughout 12 property in continental Europe.

With a powerful sustainability focus and ESG ideas embedded within the funding course of, BNPP AM’s actual property debt funding philosophy is to construct diversified and granular portfolios and to contribute to financing the vitality transition via a give attention to enhancing the vitality consumption of well-located properties.  The crew’s present choice is for resilient asset varieties akin to workplaces with environment friendly ESG scores and restricted emptiness charges; logistics, that are additionally benefiting from low emptiness charges in addition to provide chain disruption; and residential/dwelling, which is much less risky and affords steady money flows and good liquidity.  The actual property debt crew is supported by BNPP AM’s Sustainability Centre in analysing the ESG efficiency of its investments relative to quantitative aims, and advantages from being a part of BNPP AM’s Non-public Debt & Actual Property (‘PDRA’) funding division, led by David Bouchoucha.  PDRA consists of specialists in different asset courses akin to infrastructure and company loans, and is ready to present a wider perspective on the personal debt market in addition to bringing extra technical experience.