BNP Paribas Real Estate Investment Management (REIM), the Investment Management business line of BNP Paribas Real Estate, has posted its 2021 figures and shed light on its outlook for the coming year. With some € 30bn in assets under management (+€ 700m vs 2020) and net income of € 114m, BNP Paribas REIM is proving more than ever to be a leading player in European property investment.
"Although the health crisis has had a substantial impact on the entire European real estate sector, BNP Paribas REIM has shown great resilience, thanks to its talented and committed teams. The figures were on target in 2021, with the diversification of our portfolio and new opportunities for our private and institutional investors. With these strengths, we are confident of moving into a new phase of business development in 2022 and continuing to make our products a haven for investors,” says Nathalie Charles, Global Head of Investment Management at BNP Paribas Real Estate.
A year of strategic repositioning and results driven by inflows and acquisitions in 2021
BNP Paribas REIM has repositioned itself by putting the idea of “investing in Real Estate as living assets” at the heart of its strategy. The aim is to manage assets, whatever their type, in a nimble, proactive, customised and responsible manner by integrating three pillars: a European ecosystem, an innovative approach and a stronger ESG (Environmental, Social and Governance) stance.
BNP Paribas REIM saw inflows of around € 700m from private investors in 2021. This success is largely thanks to the launch of new investment vehicles, but also the track record of existing funds.
Capital raised from institutional investors in open-ended funds stands at € 500m. Inflows were driven by HPF Europe (Healthcare Property Fund Europe), which met with a keen appetite, attracting € 280m of new capital, with € 140m of new acquisitions made and a considerable investment pipeline for 2022. The European Impact Property Fund (EIPF) also thrived, with over € 150m of new capital raised in 2021, three acquisitions closed in France, Italy and Germany and many investments that are either in exclusive negotiations or signed. Four new mandates were also won in 2021 from institutional investors.
In a hyper-competitive market and with transactions being delayed, BNP Paribas REIM transacted a total of € 2.5bn throughout Europe. Highlights in H2 included the “Tweed” office building in Belgium on behalf of NEIF III bought in a Joint Venture with Caisse des Dépôts, the residential building located “Rue des Cloÿs” on behalf of EIPF in France and the “Crespi 26 – Milan” office building on behalf of EIPF in Italy.
In total, there were € 29.7bn assets under management at the end of 2021, an increase compared to 2020 (+ € 0.7bn).
Roadmap for 2022: increase investment volume and continue to bring funds into compliance with ESG criteria
Our overall investment target of € 3.3bn in 2022 is underpinned by the marketing of new funds for private investors and increased inflows for all segments. The outlook is already very encouraging, with € 2.1bn of transactions in exclusive negotiations or signed as of end February.
REIM's ESG strategy will also take another step forward in 2022. Following the SRI certification of four funds in 2020 and 2021, BNP Paribas REIM continues to forge ahead with new challenges associated with tangible objectives:
- By end 2022, 85% of our funds open to all investors and 100% of funds for private investors will be SRI-labelled and/or comply with sections 8 and 9 of the European Sustainable Finance Disclosure Regulation.
- By 2025, this will be the case for over 90% of the funds managed by BNP Paribas REIM.
“BNP Paribas REIM is increasingly focusing its investment strategy on more responsible real estate. With a clear roadmap and tangible objectives for 2025, we are taking a pragmatic approach that aims to push each of our funds towards greater sustainability, which is a prerequisite for long-term performance” states Nathalie Charles, Global Head of Investment Management at BNP Paribas Real Estate.
- Amira TAHIROVIC
