BNP Paribas Real Estate Investment Management (BNP Paribas REIM) has acquired a land site with an order to build in the Oslebshausen district of Bremen on behalf of one of its clients. The first Toom DIY store to fall under the KfW-40-EE standard in Germany is currently being built at the business park on Schragestraße. The property is also expected to be DGNB Gold certified. Start of construction was in Q1 2022 and completion is planned for early 2023. The transaction was brokered as an off-market deal. The seller is a subsidiary of the Ten Brinke Group, which initiated the project and is also acting as property developer.
This forward deal is the fund’s first investment in the retail segment. “Retail parks and DIY stores have seen significant growth in recent years despite the impact of e-commerce and the pandemic,” says Isabella Chacón Troidl, Chief Investment Officer of BNP Paribas REIM Germany, about the current market trend, adding that DIY stores have a particularly positive effect on footfall and will strongly benefit from the anticipated upward trend. She concludes that the DIY segment will remain attractive for investors in the medium term thanks to reliable rental growth and comparatively strong yields.
The decision to go ahead with the investment was also based on the property’s particular focus on sustainability as early as the planning stage. High-quality insulation and a state-of-the-art heat recovery system integrated into the ventilation system will reduce the amount of energy used for heating. Energy consumption will also be significantly reduced through the installation of skylights, LED luminaires and solar panels. “The property fits in perfectly with our understanding of real estate as a living asset that makes a beneficial contribution to society and local communities. DIY stores offer a wide range of essential products and the new Toom store also addresses a regional supply gap. The new-build will also make a vital contribution to sustainability in the real estate sector thanks to its high energy standard,” says Isabella Chacón Troidl.
Norton Rose Fulbright acted as legal advisor to the buyer. Dr. Lübke & Kelber acted as broker. Legal advice to the seller was provided by the seller’s in-house legal team.
The client is a French SCPI which is designed for private investors in France and was launched by BNP Paribas REIM in 2017. The fund currently holds more than €170m in real estate assets and is legally structured as an SCPI, a regulated investment vehicle that in many ways is similar to a German close-ended fund with access to variable equity. The fund’s portfolio boasts four office assets located in Ratingen, Bremen, Bad Homburg and Munich as well as one hotel also located in Munich. “The acquisition of Toom DIY store enhances the asset diversification of the fund and illustrates our ESG strategy in the context of the SRI certification that the Fund obtained in December 2021”, says Jean-Maxime Jouis, Global Head of Fund Management of BNP Paribas REIM. The fund aims to generate further growth in the German office, logistics and retail segments. Additional assets are currently under review.
The Ten Brinke Group, which was founded in 1902, is a pan-European property developer, building contractor and asset manager headquartered in Varsseveld, Netherlands. With roughly 1,200 employees and branch offices in the Netherlands, Germany, Spain, Portugal and Greece, the company generates average annual sales of around €1bn. Ten Brinke covers the entire real estate value chain from land acquisition, planning, concept development, construction and financing to services such as sale, leasing and property, facility and asset management for assets ranging from residential properties to large industrial properties.