BNP Paribas and Cording form value-added fund
BNP Paribas Real Estate Investment Management Germany and Cording Real Estate Group have teamed up to launch a value-added fund, according to a statement. The Real Value Fund is targeting €150 million in equity commitments.
The open-end fund has already secured more than a third of its targeted equity fundraising from institutional investors and has acquired its first property: the 18-story Media Tower in Düsseldorf. In 2013, BNB Paribas acquired iii-investments, and the firm changed its name to BNP Paribas REIM Germany.
“Our Real Value Fund uses a manage-to-core approach and, therefore, is able to unlock the latent value of a property,” said Reinhard Mattern, chairman of the management board of BNP Paribas REIM Germany, in a statement.
The Media Tower, built in 2006, is currently 50 percent occupied, with the average remaining term of the remaining leases less than three years. Cording will reposition and renovate the building.