BMO Real Estate Partners (BMO REP) has made the first acquisition for its new Europe residential fund.
The manager said the BMO Europe Residential FCP-RAIF fund, which seeks raise to raise €800m, has acquired a 5,600sqm property at Paviljoensgracht 1-3 in The Hague for an undisclosed amount.
The six-storey building was built in 1983 as an office and commercial building and was converted into a residential building over the last two years.
The BMO Europe Residential FCP-RAIF fund, categorised as article 8 product under the new EU Sustainable Finance Disclosure Regulation, will invest in mid-market and affordable residential real estate as well as senior living in metropolitan regions and major cities in Germany, France, the Netherlands, Austria, Italy and Spain.
Iris Schöberl, managing director for in Germany and head of institutional clients at BMO REP, said: “We are delighted to have struck gold with our first purchase for the European residential fund as The Hague offers such an international environment.
“The property is a prime example of a dynamic, mixed-use development and can be used as a model for numerous other properties. In the long term, there is the possibility of converting further letting areas into apartments thus presenting a great potential for value appreciation.”
Ian Kelley, managing director, head of France, Benelux and Southern Europe at BMO REP, said the acquired property has an excellent micro-location in the city centre of The Hague in the immediate vicinity of the main shopping street, with excellent infrastructural connections.
“The residents of the fully rented property have easy access to both the city’s largest office submarket and cultural and educational institutions, such as the Leiden University campus.”
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