BMO Real Estate Partners has invested €65m on behalf of its latest European high street retail property fund.

The manager said its open-ended Best Value Europe (BVE) II fund has acquired two properties in Milan totalling 716sqm in a sale and leaseback deal and a 3,600sqm multi-let retail and residential property in Copenhagen’s city centre.

The Milan assets are located at Corso Vittorio Emanuele II and on the mile-long Corso Buenos Aires.

The ground and first floors of the four-storey property at Vimmelskaftet 46-48, Strøget comprises retail units which are fully-let. The upper storeys comprise 17 residential apartments.

Ian Kelley, fund director Europe at BMO Real Estate Partners said: “These off-market acquisitions further diversify the income profile of the fund, providing it with new exposure to key cities which benefit from high levels of affluent footfall.

“The specialised prime area of the retail market continues to outperform as the best brands consider prime located physical stores an integral part of their omnichannel offering. The outlooks for Copenhagen and Milan remain positive, leaving us confident in our ability to generate attractive long-term returns for our investors.”

BVE II focuses on selective prime high street retail properties within top tier or dominant European cities that benefit from strong tourism, high footfall and deep international retailer markets.

The fund, which raised €250m last month, has a target equity of €600m and €1bn in gross asset value, with 11 investments to date delivering a €300m portfolio.