BNP PARIBAS REIM launches European property climate fund targeting €1b

BNP Paribas Real Estate Investment Management (BNP Paribas REIM) has launched the first property fund that sets out to be compliant with the 2015 Paris Agreement, targeting a 40% reduction of Greenhouse Gas Emissions within 10 years.

The European Impact Property Fund (EIPF) has raised €160 mln of equity commitments at its first close, including €100 mln from a major European Insurance company.
 
The fund will seek to have a ‘significant impact’ by reducing emission in existing stock. The fund will implement a “best-in-progress” approach by targeting existing properties in Europe across all user classes of real estate. The business has also put in place a detailed climate reporting system, to quantify the fund’s positive impact on assets and to measure the success of reducing GhG emissions and contribution to the low carbon transition.
 
Structured as a Core European Diversified Open-Ended Fund, EIPF expects to reach a gross asset value in excess of €1 bn over the next couple of years with a strong diversification by sector and geography. EIPF aims to achieve recurring and stable income return with an annual distribution of approximately 4% net with a target LTV of 25%.
 
‘BNP Paribas REIM is recognised as a trusted partner for Core European strategies. EIPF offers a very innovative real estate investment solution to investors seeking stable income return whilst looking to participate in the climate transition, which is becoming increasingly important in the allocations of institutional investors,’ commented Laurent Ternisien, Chief Client Officer.
 
’BNP Paribas REIM is already long-standing manager in the ESG field. The objective of EIPF is to go one step beyond established practices with a climate Impact Investing approach applied to European properties. BNP Paribas REIM is committed to being a frontrunner in ESG strategy,’ added Nathalie Charles, Deputy CEO of BNP Paribas Real Estate and Global head of Investment Management.
 

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