BMO Real Estate Partners has acquired a prime retail and office asset in Paris for its recently launched pan-European retail fund.

BMO Real Estate Partners has acquired a prime retail and office asset in Paris for its recently launched pan-European retail fund.

Located at 15 Rue De La Paix in the heart of Paris’ luxury retail area, the 1,750 m2 property is fully occupied by 10 tenants including luxury retailers Mauboussin and Alfred Dunhill.

BMO REP acquired the property from a private investor who had owned it for the past 20 years. Financial details were not disclosed. Local property manager Dauchez will continue to manage the asset, which dates from 1840.

The property is the first to be acquired following the recent launch of BMO REP’s first pan-European property fund, Best Value Europe 1.

The new fund will invest in core and core-plus retail properties and shopping arcades in major cities across Europe and is managed by Ian Kelley, fund director of Europe. Structured as a KVG special fund, the vehicle has secured €150 mln of equity from German institutional investors and is targeting €350 mln which, with 50% debt, will give it fire power of up to €700 mln.

‘This acquisition illustrates the strides we are making in Europe as we continue to expand our portfolio in the most prime locations across the continent,’ Kelley said. ‘The surrounding area is rapidly upgrading and progressing with iconic flagship stores for international brands such as Tag-Heuer, Cartier, Omega and Tommy Hilfiger, and we continue to see future potential for this location.’

BMO Real Estate Partners describes itself as an ‘investment boutique and property specialist’ within BMO Global Asset Management, the €225 bn asset managment arm of New York-listed Bank of Montreal. BMO acquired UK fund manager F&C REIT in 2014 to transform it into the Canadian group’s EMEA business. F&C REIT was rebranded as BMO REP in July this year. Besides funds and listed trusts, the firm also invests on behalf of segregated accounts.

See PropertyEU’s interview with Ian Kelley on the new fund New BMO retail fund to focus on 'ultra-core' assets