BMO Real Estate Partners has invested £40m (€47m) in northwest England on behalf of the BMO UK Housing Fund.
The acquired fund has acquired the Hughes House scheme of 258 new homes in Liverpool city centre in a forward funding agreement.
The deal represents the first round of deployment for the UK housing fund which invests in various house types including city apartments and suburban housing.
The open-ended fund, seeded by BMO Real Estate Partners and Home Group, is backed by investors including Big Society Capital and Swansea LGPS.
Peter Lowe, fund manager at BMO Real Estate Partners, the investment advisor to the fund, said: “This acquisition provides us with an opportunity to support the delivery of affordable private rental housing in Liverpool while also generating sustainable, inflation-linked long term income returns for investors.
“The scheme will enable us to satisfy local demand, particularly from key workers employed within the local authority, city centre hospitals and nearby universities.
“We expect to follow up this acquisition with a further pipeline of near-term opportunities as we continue to support the delivery of affordable housing solutions across the UK.”
Richard Kirby, head of UK, BMO Real Estate Partners said: “We’re proud to utilise our responsible investment credentials in partnership with Home Group to promote private capital’s role in delivering and operating long term rental properties for local key workers.
“It is also important that while this fund has clear social objectives it aligns to our philosophy of creating sustainable real estate by also prioritising environmental considerations and promoting sustainable living, ultimately creating thriving communities for the long term and supporting income generation for our clients.”
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