BNP Paribas Real Estate Investment Management [Europe]

2017 Real Estate Top 100 ranking: 39http://www.realestate.bnpparibas.com

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Manager Details

Our investment managers, asset managers, other professionals and real estate specialists provide management services throughout Europe.

BNP Paribas Real estate Investment Management provides high level asset and fund management services thanks to its 300 people spread out over seven countries in Europe.

BNP Paribas Real Estate Investment Management provides the following services:

Pooled funds for qualified investors.

Tailored asset management services:

  • Structuring and managing your investment vehicles.
  • Transaction support.
  • Asset management.

We have regulated entities in the following countries:

  • France: BNP Paribas Real Estate Investment Management (SGP) by Autorité des Marchés Financiers (AMF).
  • Italy: BNP Paribas Real Estate Investment Management Italy (SGR) by Banca d’Italia and CONSOB.
  • Germany: BNP Paribas Real Estate Investment Management Germany by BAFIN.
  • UK: BNP Paribas Real Estate Investment Management UK ltd by the Financial Conduct Authority (FCA).
  • Luxembourg: BNP Paribas Real Estate Investment Management Luxembourg S.A. by Commission de Surveillance du Secteur Financier (CSSF).

Sector forecasts

OFFICE: The steady improvement in the labour market is expected to create jobs, especially in the office sector. Cities such as Frankfurt and Paris, and to a lower extent Dublin, Luxembourg and Amsterdam are well placed to attract prospective office jobs relocating from London as a result of the Brexit vote. However, the magnitude of any relocations from London is not likely to become clear until negotiations between the EU and the UK progress significantly. Within the euro zone, we expect rental values to grow in central locations as demand improves while new supply stays in check. Aside core and core strategies, value-added propositions are also attractive, as the availability of good-quality, modern space is scarce in most European markets.

RESIDENTIAL: Housing market investment in most European countries is expected to grow, as a result of the improving economic environment, including rising employment, and very favourable lending rates. Consequently, we forecast house prices will continue to rise in most European markets this year. Demand for residential product is non-cyclical, while income streams are steady and vacancy rates for institutional product are low. This sector is supported by long-term structural drivers such as immigration and on-going urbanisation, while new supply is chronically unable to match potential demand. However, the regional aspect needs to be highlighted as demand is limited to the most dynamic cities where job growth is strong. Institutional investors are increasingly attracted to this sector, which is characterised by very high risk-adjusted returns.

RETAIL: Falling unemployment and low inflation are supporting consumer confidence levels and, as a result, retail sales growth in Europe. The market share of e-commerce is quickly increasing and, consequently, a few traditional retailers are embracing this business model and now operate in omni-channel mode. While new store openings are slowing down, the most important retailers increasingly use their premises as flagship stores to build closer relationships with their customers. Overall, prime and core high-street is quite resilient while secondary pitches are suffering from low demand and increasing vacancy rates. This divide is also expected to happen for out-of-town shopping centres. Large centres that are dominant and where technology is state-of the-art are expected to fare much better than smaller, suburban, non-dominant centres.

LOGISTICS: While all the main drivers of logistics demand are notably improving, the rise of e-commerce is surely the main reason behind the increasing institutionalisation of the sector. E-commerce sales enjoy double digit while more traditional retailers are adopting omni-channel distribution business models. E-commerce tends to require much more space than traditional retailing and this results in demand for both high-quality XXL distribution and “last mile” e-fulfilment centres close to the most important and densely populated cities. The level of speculative building is low in most markets and this, in turn, supports rental values, which are below pre-crisis peak in quite a few cities. Demand ranges from retailers and manufactures to 3PLs occupiers, which are increasingly important, despite the recent wave of consolidation in this industry. Location still is the paramount criterion of choice for occupiers, while specifications for new supply are not really stringent, as new product is thought for a second generation of occupiers.

Investment principles & strategy

Our investment philosophy focuses on high-grade office buildings in economically strong locations as well as highly attractive logistics, retail, residential properties, in core and value add strategies. Our dedicated research team enables us to have a precise market view allowing us to do scenario calculation at property and fund level. With our real estate debt funds, we offer institutional investors the opportunity to invest in a commercial real estate loan portfolio as an alternative to conventional real estate investments. The analysis of a property subject to a loan is conducted under the same criteria as any other property investment. We consider a long-term approach focusing on yield, value creation and capital preservation, with transparent management and regular communication to our clients.

Strategic corporate development

We help our Asian and Middle East clients to access European real estate thanks to our Hong Kong and Dubai platforms.

COMPLIANCE STATEMENT - These materials are provided for use by qualified institutional investors for information purposes only and are not intended as solicitations of investment business.

News from BNP Paribas Real Estate Investment Management [Europe]

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News from IPE Real Estate

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White Papers / Research from BNP Paribas Real Estate Investment Management [Europe]

Analysis from IPE Real Estate

  • Europe: All to play for

    The UK’s vote to leave the EU has caused investors to re-evaluate political risk. With elections on the horizon across Europe, political instability in the region has never been so pronounced, writes Russell Handy

  • Brussels: Capital gains

    Decreasing vacancy levels in Brussels and yield compression in rival European cities have put the Belgian capital back in the spotlight

  • City Focus: Lyon - Food for thought

    Investment volumes may not be earth shattering, but a strong tenant mix bodes well for the capital of la gastronomie, writes Russell Handy

  • Logistics Europe: Logistics delivers the goods

    Offering predictable income and expanding because of e-commerce, logistics is fuelling investor appetite, writes Russell Handy

  • German Spezialfonds: A growing, evolving landscape

    The Kandlbinder Report 2015 shows that the German real estate Spezialfonds market has grown, while the profile of its managers and investors has changed, according to Till Entziam

View more Analysis from IPE Real Estate

Head Office
167 Quai de la Bataille de Stalingrad
Issy Les Moulineaux
92867
France
Contact
Marc Sillon Tel. +33 1 5565 2757
Company website:
http://www.realestate.bnpparibas.com
Parent Company:
BNP Paribas SA

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