BMO Real Estate Partners (BMO REP) has acquired an asset in Germany for its European high street retail fund.

The acquisition of the asset in Cologne city Centre marks a maiden investment in Germany for BMO REP’s Best Value Europe II Fund (BVE II).

The Cologne property comprises a 1,500sqm modern flagship store located at Hohe Straße 84–86. Completed in 2017, it is let to international lingerie and swimwear brand Hunkemöller.

The deal is the 14th acquisition undertaken on behalf of BVE II, which is invested in seven countries in Continental Europe with a current gross asset value of more than €420m. The target investment volume for the fund is €1bn.

Assia Amore, European fund manager at BMO Real Estate Partners said: “This first acquisition in Germany for BVE II further strengthens the diversification of the portfolio, with the addition of a liquid and resilient market in Cologne. E-commerce penetration is reaching record highs, accelerated by the COVID-19 pandemic, and alongside this our conviction in the bifurcation of retail property in favour of ultra-prime locations is being reinforced.

“As the economies of major European cities begin to recover, we believe that a portfolio of carefully selected assets with strong tenant covenants is well placed to deliver attractive capital and income returns.”

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