BMO Real Estate Partners’ (BMO REP) pan-European retail property investment fund has acquired a property in France’s capital for an undisclosed sum.

BMO REP said the prime luxury retail property asset, on Paris’s Rue du Faubourg, was bought in a sale-leaseback transaction and based on a net initial yield of 3.40%.

The property has around 1,000sqm of space and is in a Grade A condition, it said.

Ian Kelley, the fund director in Europe at BMO Real Estate Partners, said: “This latest investment is a true trophy addition to our portfolio, and represents the fund’s 4th retail property in Paris.

“The outlook for both the city and this asset specifically are very positive; Paris continues to attract record tourist numbers, while strong demand continues from the best brands for this esteemed location.”