BMO offloads 64,000 m2 portfolio in Germany

Investment manager BMO Real Estate Partners has sold a mixed-use portfolio in Germany's North Rhine-Westphalia state to Deutsche Immobilien Opportunitäten (DIO), acting on behalf of a foreign investor.

Although financial details were not disclosed, BMO said the transaction volume is in the 'high double-digit' million euro range.

The portfolio consists of 16 predominantly inner-city properties spread over various cities and offering over 64,000 m2 of space. The office, residential and commercial buildings currently generate an annual net rent of €5.3 mln, with anchor tenants including Rewe and Lidl.
'After a holding period of more than 10 years, we have decided to sell the properties as part of a portfolio adjustment,' said Vincent Frommel, head of fund management at BMO Real Estate Partners Germany. 'The small-scale and inhomogeneous portfolio is not in line with our current investment strategy. With DIO, we have found an investor specialising in such portfolios, who is prepared to continue investing in the properties in a targeted manner and thereby increasing their value. BMO Real Estate Partners Germany focuses on retail properties in inner-city A locations, especially in B and C cities. In addition, BMO Real Estate Partners Germany is increasingly investing in residential real estate.'


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