BMO Real Estate Partners (BMO REP) has announced the purchase of a high end department store in Prague, which is occupied by Van Graaf, on behalf of investors in its pan-European retail property investment fund.
BMO Real Estate Partners acquired the building from MTK Developments, a Vienna-based European real estate firm specialising in value-add investments. Financial details were not disclosed.
The asset is located on Wenceslas Square 17, Prague’s main mass-market shopping street, and comprises 12,000 m2 of rental area over six storeys. It is let on a fixed long-lease term of over 28 years.
The transaction, which is BMO’s eighth acquisition for the Fund, brings its total portfolio value to over €600 mln. The fund was launched in October 2015 having raised nearly €400 mln of capital and focuses on high quality retail properties in prime shopping streets within major European cities.
'This is one of the best high street retail properties in Prague,' said Ian Kelley, fund director, Europe at BMO Real Estate Partners. 'The long term lease provides secure, sustainable income from a strong covenant within a market offering strong economic and rental growth forecasts.'
Jerome Feltham Property Advisory, Kinstellar, Atoz and White & Case advised BMO Real Estate Partners on the transaction.
BMO Real Estate Partners is a specialist real estate investment manager firm with €6.7 bn of assets under management. It is part of Canada’s BMO Financial Group’s £189.3 bn AUM Global Asset Management business.
