Investors strap themselves to real estate debt, pouring £590m into BNP Paribas fund
Investors have poured more than €700m (£592m) into BNP Paribas’ second senior commercial real estate debt fund.
The French asset management giant sailed passed its €500m (£423m) target, with investors keen to strap themselves to sturdy funds with a record of navigating financial crises, such as the pandemic.
The second fund has snagged more than double the figure its inaugural fund raised.
“In the post-pandemic environment of increased volatility, rising interest rates and mounting inflationary pressures, now is an appropriate time to invest in real estate debt,” head of real estate debt as BNP Paribas Asset Management, Christophe Montcerisier, said.
“It offers both attractive returns, especially relative to equity, and defensive investments backed by properties that provide inflation-linked cash flows, with a significant equity cushion.”
The latest bout of investment brings BNP’s total assets in senior real estate debt, under its asset management business, in excess of €1bn (£846m) across the twin funds.
The capital has so far funded 19 transactions in Europe, across logistics, office and residential sectors.
The first fund, which launched at the end of 2017, secured €335m (£283m) before closing in April last year, which has since been injected into 12 assets across the continent.