BNP Paribas Asset Management Alts (BNPP AM Alts) has secured approximately €3bn (£2.6bn) in capital commitments for its dedicated Enhanced Commercial Real Estate (CRE) Debt Fund and discretionary capital to co-invest through separate vehicles.
The alternatives asset manager raised commitments from clients across Europe, APAC and the Americas, with a “substantial” commitment from existing investors, alongside new investors to its CRE Debt platform.
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BNPP AM Alts aims to build a portfolio of loans between €50m and €500m in size, secured against institutional‑quality, well‑located assets for its pan-European Enhanced CRE Debt strategy.
The fund will focus on the origination of senior‑ranking loans at leverage levels higher than those typically available from banks, alongside development and transitional financing to fund construction, redevelopment and transitional projects.
Where the risk-return profile is “compelling”, the strategy will also invest selectively in junior debt.
BNPP AM Alts expects geographic exposure to be skewed towards the UK, Germany and France, with additional allocations across Southern Europe, Benelux and the Nordics.
The strategy will be diversified across industrial and logistics, residential and alternative sectors, as well as office, retail and hotels.
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According to BNPP AM Alts, continued bank retrenchment from European real estate lending, driven by tighter regulatory capital and liquidity requirements, has generated growing demand for alternative sources of finance, particularly for development and refurbishment projects.
“Over the past two decades, BNPP AM Alts’ pan-European CRE Debt platform has continually delivered strong through-cycle returns for clients,” said Timothée Rauly, global co-head of real estate at BNPP AM Alts.
“As real estate debt has become a key component of insurers’ debt strategies and, more broadly, a key component of asset-based finance portfolios, we believe our dedicated Enhanced CRE Debt vehicle is positioned on a segment that will continue to offer a compelling investment, even in the current geopolitical situation.”
Antonio de Laurentiis, global head of real asset finance at BNPP AM Alts, added: “Having secured a significant volume of fresh commitments into the CRE debt sector via a range of vehicles, our goal now is to deploy this capital in a highly disciplined and selective way, as polarisation of the market requires it. In this context, having local teams and a real recognised development expertise is appreciated by both borrowers and investors.”
BNPP AM Alts manages approximately €300bn in assets across real estate, infrastructure, alternative credit and private equity.
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