PFA Pension is expanding its European logistics real estate mandate managed by BMO Real Estate Partners.
Denmark’s largest mutually-owned commercial pension provider first hired BMO in 2019 as part of a move to invest directly in the French real estate market.
At the time, BMO was given an initial equity commitment of €100m to invest in value-add and core-plus logistics developments in France.
Initial acquisitions included two properties in Bassens, next to the port of Bordeaux, a cross-docking facility in Corbas, Lyon, and the renovation of a last-mile logistics warehouse in Fretin, Lille.
Following deployment of the initial capital, the mandate has been given an additional €200m of equity to include core, core-plus and value-add investments across continental Europe, with a particular focus on France, Spain and Italy.
With debt financing, the expanded mandate has more than €400m of investment capacity.
BMO will source, acquire and manage standing properties, developments and redevelopment opportunities near city centres, ports and airports or within established logistics clusters.
The company will focus on urban warehouses, cross-docking facilities and grade-A warehouses with single or multi-tenant occupancies.
Ian Kelley, managing director and head of France, Benelux and Southern Europe at BMO Real Estate Partners, said: “Our partnership with PFA Pension is a strong endorsement of our tailored service offering and ability to invest across the entire risk spectrum within the logistics sector and in multiple geographies.
“Having deployed the initial tranche of capital efficiently, through the sourcing of off-market opportunities via our deep network of market relationships, the investments have outperformed with successful leasing initiatives, illustrating our expertise and the capabilities of our team. We look forward to continuing this track record with the extended mandate.”
