BMO Real Estate Partners (BMO REP) has added a third asset to its new retail real estate fund, Best Value Europe II. The fund's medium-term objective is to acquire upwards of €1 bn of high street retail property in major European cities.
BMO REP, part of Canada's BMO Financial Group’s €216.8 bn global asset management business, said the fund is backed by 'seed commitments from repeat investors'.
The short-term objective for the fund is to achieve a gross asset value of €500 mln and then to grow in the medium-term to upwards of €1 bn. BVE II will focus on high-quality retail properties in prime shopping streets within major European cities. The predecessor fund, BVE I, is over 90% invested and owns a portfolio of 12 assets totalling over €700 mln.
BMO REP said that its latest BVE vehicle has a strong pipeline of potential investments. Its initial deals were two prime assets in Verona and Madrid, purchased for a total of €39 mln.
A mixed-use building situated in a luxury shopping location in Lisbon has now been added to the portfolio. Avenida da Liberdade 108 (pictured) is a refurbished 2,104 m2 property with offices and a retail unit let to fashion brand Michael Kors. The building was acquired in an off-market transaction for €15.2 mln. CBRE advised BMO REP in the deal.
BVE II represents the fifth high street retail strategy for BMO REP, which has over €2.7 bn of assets under management in the niche segment across Europe.
Ian Kelley, fund director Europe at BMO Real Estate Partners, said: 'We have a long-term commitment to our specialised high street retail strategy and BVE II will enable us to continue taking advantage of the many opportunities we are seeing across Europe that we believe will deliver attractive returns.'
'Having expanded our team in Paris, we are in an even stronger position to execute our on-the-ground approach in identifying and unlocking assets that meet our strict investment criteria,' Kelley added.
BMO Real Estate Partners is a specialist real estate investment manager with €6.3 bn AUM across core European markets.