NEIF III was launched in 2017. It is a pan-European, open-ended fund managed by BNP Paribas REIM. It gives institutional investors an opportunity to diversify internationally in the office sector in key Eurozone cities, with a clear ambition to make environmental and social issues central to its strategy. The fund aims to build a portfolio of assets with a consistently good environmental label or targeting a valid certification (such as BREEAM Very Good or HQE Exploitation) before upgrading the certification by two levels within two years of its acquisition. This is intended to generate a regular and stable income with a target yield of 4% net per annum with a low risk profile.
The fund already has an established asset base and a rapid deployment timeframe, with high visibility for new investors wishing to join the fund ahead of the next closing dates.
NEIF III is targeting assets with a good level of environmental certification, showing strong ESG commitments; an essential criterion in the investment decision process. The fund strengthened its environmental focus with the support of the fund's investors in late 2021 and so will comply with the requirements of Article 8 of the Sustainable Finance Disclosure Regulation (SFDR). Also in 2021, the fund improved its GRESB (Global Real Estate Sustainability Benchmark) rating, to achieve top ranking in its category for core office funds invested in Western Europe.
Over the last two quarters, the fund has acquired 4 new assets in Brussels, Berlin, Vienna and Luxembourg. The modern office buildings are environmentally certified and located in the most sought-after districts of these various capitals. These latest acquisitions have further diversified NEIF III's portfolio, which now consists of 11 assets under operation with an asset value of around €800 million, and also enabled the fund to deploy all of its capital by 31 December 2021.
A new building has recently been acquired. It is located in one of Milan's business districts and has been completely refurbished to a high standard. It is to be certified LEED Platinum, BREEAM Very Good, Wiredscore and Well Silver. It is 100% pre-let with a lease duration of 13 years. This 12th deal should enable inflows from Q1 to be deployed this summer.
“We aim to continue growing the NEIF III fund through further capital raising in the coming years. The goal is to have an asset base of over €1.5 billion. The fund already has institutional investors from six European and Asian countries” remarks Henri Romnicianu, Head of Institutional Investor Relations for BNP Paribas REIM.
“NEIF III has a strong portfolio and is looking at new acquisition opportunities in major Eurozone cities. Our investment teams in Europe are constantly analysing the sustainable office real estate sector. Securing this latest asset in Milan is a fine example of the current momentum” adds Dorothea Koestler, Fund Manager for BNP Paribas REIM.
