BMO Real Estate Partners’ pan-European real estate fund has acquired two luxury retail properties in Italy for €150m.

The asset manager said the first property, which was acquired from the Kering Group in a sale-leaseback transaction, comprises a 1,500sqm recently refurbished grade-A high street retail property in Milan. The asset is spread across four floors and is fully leased.

BMO Real Estate Partners also said the other asset, a 600sqm luxury retail property, is located in Rome.

Ian Kelley, fund director, Europe at BMO Real Estate Partners, said: “These two latest additions to our portfolio are a clear demonstration of our capacity to source and deliver rare investment opportunities across Europe for our clients.

“Both properties are highly sought retail investments, holding ultra-prime locations in two of Italy’s leading cities, and offering the fund an increased exposure to the country’s growing luxury sector.

“Given the positive outlook for luxury retail in both Milan and Rome, we are confident in our ability to generate attractive returns from each asset for our investors.”

BMO’s retail property investment fund focuses on high-quality retail properties in prime shopping streets within major European cities and is aimed at institutional investors.