BMO REP buys three assets for newly launched high street retail fund

BMO Real Estate Partners’ (BMO REP) newly launched high street retail fund, which plans to grow its total assets’ value to up to €1bn, has acquired three properties.

The specialist real estate investment manager said Best Value Europe II (BVE II) has received seed commitments from repeat investors.

This ensures BMO REP can continue capitalising on the strong pipeline of investments already established for the fund, following its initial acquisitions of two prime assets in Verona and Madrid for around €39m, it said.

The third property acquired is a trophy asset on Avenida da Liberdade 108, Lisbon’s top luxury shopping destination, for €15.2m.

In the short-term, BVE II plans to reach gross asset value of €500m and then growing in the medium-term upwards of €1bn, the manager said.

Like its predecessor, which is now over 90% invested with a portfolio of 12 assets totalling over €700m, BVE II will focus on selective, high-quality retail investment opportunities in prime shopping streets within major European cities.

Ian Kelley, fund director in Europe at BMO Real Estate Partners, said: “We have a long-term commitment to our specialised high street retail strategy and BVE II will enable us to continue taking advantage of the many opportunities we are seeing across Europe that we believe will deliver attractive returns.

“Having expanded our team in Paris, we are in an even stronger position to execute our on-the-ground approach in identifying and unlocking assets that meet our strict investment criteria.”

Iris Schoeberl, a managing director in Germany and head of institutional clients at BMO Real Estate Partners, said: “The launch of BVE II demonstrates our consistent track record in delivering returns in this specialised area of the retail market and one which we see as very resilient in the current climate, whilst offering a strong income based return.

“This focused investment strategy has resonated with our clients, who continue to support our approach through repeat investments.”

BVE II represents the fifth high street retail strategy for BMO REP.