BNP Paribas Real Estate Investment Management Germany has teamed up with Cording Real Estate Group to launch a new real estate value-add fund known as Spezialfonds.
The Real Value Fund has a target equity volume of €150m (£109m), and has secured one-third of the target volume through institutional investors.
Its first acquisition will be the 18-floor Media Tower in Dusseldorf Media Harbour, a 97,000 sq ft property that is being bought for renovation.
BNP Paribas REIM Germany chairman Reinhard Mattern said: “Traditional core real estate increasingly fails to meet the return expectations of institutional investors because of movements in real estate prices. For that reason, there is a great interest in non-core properties that can be developed into core properties.
“Our Real Value Fund uses a manage-to-core approach and is therefore able to unlock the latent value of a property.”
