Corporate overview

BNP Paribas REIM is a full service provider covering the entire life cycle of European property investments in all European countries and sectors. With more than 50 years of experience, we provide you with sensible, long-term investments in pan-European real estate generating income and creating value, across a range of highly diversified investment vehicles and separate account solutions.

Our expertise covers the full spectrum of real estate investment management, including all elements of strategy and solutions, invest-ment, development, asset management, structuring, risk management as well as proprietary research. Our real estate professionals blend local expertise with global practices and benefit from one of the best real estate networks throughout Europe.

Sector forecasts

OFFICE: While this year will obviously feature a strong reduction in demand activity, we should start seeing some recovery in office absorption from 2021 as the European economy picks up pace and companies resume hiring. Moreover, we anticipate that the expected increase in homeworking practices should not produce an equally proportional decline in office demand but the overall effect should be more nuanced, as a result of a) homeworking being occasional and not permanent, and b) the end of the trend towards office densification. Low initial vacancy rates and a relatively controlled new office pipeline in most markets will support rental values. As a result, we only expect a minimal rental correction for most markets, at least for good product located in CBDs or other core areas. On the contrary, the outlook for secondary office stock will be more challenging.

RESIDENTIAL: The potential for capital growth remains intact in most markets, mainly as a result of historically low mortgage rates and an on-going, chronic demand-supply imbalance, at least for the cities that are still profiting from urbanisation. The residential segment where the most significant opportunities lie is affordable housing. This is mainly because it is very challenging for low and middle-income households to secure accommodation in the main European cities, as house prices are relatively high and cheaper-to- let stock is negligible.

RETAIL: The pandemic has accelerated the ongoing transformation of the retail sector, as retail sales growth mostly comes only from on-line sales. Moreover, a few retailers are witnessing some headwinds and the number of them filing for bankruptcy has increased. Food retail makes an exception as it has featured quite solid performances, even during the lockdown. Overall, our European retail rental forecasts remain fairly subdued, which suggests that retail strategies should privilege defensive stock, such as good high street and food-related stores.

LOGISTICS: As a result of the pandemic, e-commerce activity has received a further boost in all European countries, including the ones where e-commerce penetration was already high. While speculative development has increased in most markets, the sector remains largely undersupplied. Vacancy rates for good product remain comfortably low albeit slightly increasing. We expect substantial stability for prime rents with, possibly, only few markets showing a tiny rental decrease. Rental growth is expected to resume from next year.

Investment principles & strategy

We consider a long-term sustainable approach focusing on yield, value creation and capital preservation, with transparent management and regular communication to our clients. Our dedicated research team enables us to have a precise market view allowing us to do scenario calculation at property and fund level. Our European investment activities focus on high-grade office buildings in economically strong locations as well as highly attractive logistics, healthcare and diversified properties, in core and value add strategies.

Strategic corporate development

  • truly innovative and ESG driven
  • decisively European
  • a real estate investment manager, for both institutional and retail clients.

Performance verification

The performance of our funds and assets is compiled, calculated and verified by MSCI.

COMPLIANCE STATEMENT

Within BNP Paribas REAL ESTATE INVESTMENT MANAGEMENT (REIM), we have an independent and integrated Compliance function. All compliance officers have a hierarchical reporting line into the BNPP Group Compliance function and to the CEO or the governing body. The Compliance function ensures that the company complies with the highest legal, regulatory and professional standards that apply to our business activities in order to guarantee the primacy of customers’ interests.