The pan-European property management arm of BMO Global Asset Management has invested £19.4m (€22.6m) to buy a UK retail warehouse and an industrial asset as part of a plan to redeploy cash reserves.
BMO Real Estate Partners (BMO REP) said it has acquired the industrial asset in Colnbrook, Heathrow for £12.1m, and invested £7.3m to buy the retail warehousing scheme in Banbury, Oxfordshire.
The manager acquired the assets on behalf of BMO Real Estate Investments, the UK listed real estate investment trust.
BMO REP said the acquisitions are part of a plan to recycle proceeds realised from a number of strategic disposals from the high street and office sectors into the retail warehousing and industrial sectors.
Peter Lowe, a fund manager at BMO Real Estate Partners, said: “These latest acquisitions successfully conclude the near-term objective of redeploying cash reserves into our target sectors, having sought assets that offer ongoing asset management opportunities coupled with attractive long-term performance prospects, driven primarily by income.
“The two new properties complement our existing exposure to these resilient sectors and provide opportunities for further value creation, capitalising on the strong occupational dynamics within the industrial and retail warehousing markets.”
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