Aztec Group to provide administration services to BMO REP’s UK affordable housing fund investments
Independent fund and corporate services provider, the Aztec Group, has been selected to provide administration services to the investments held in the BMO UK Housing Fund.
Managed by BMO Real Estate Partners (REP), the real estate arm of BMO Global Asset Management, the Fund will work with housing association Home Group to create purpose-built rental accommodation for those households ineligible for social housing, but struggling to afford private-market rents. The unique feature of the Fund is the flexible rent model, maintaining affordability and minimising tenant turnover.
The Fund currently has an investment pipeline of GBP250 million and is targeting around GBP500 million of equity. This includes commitments from specialist impact investor, Big Society Capital.
BMO REP has appointed the Aztec Group to provide a range of UK administration and governance services to the assets held in the Fund from its UK office in Southampton.
Specialising in alternative investments, including real estate, infrastructure, private equity and private debt, the Aztec Group employs more than 950 people across five offices and administers over EUR370 billion of assets for more than 240 alternative investment managers.
Angus Henderson, Head of Business Development at BMO REP, says: “The fund enables us to make a real positive social impact while providing a solid return for investors. We’re delighted to have the Aztec Group on board with us for this exciting investment venture, and welcome the sector-specific expertise and outstanding credentials in real estate administration they bring to the table.”
Ravi Nevile, Head of Real Assets – UK, Aztec Group, adds: “BMO’s decision to launch this fund reflects the investor appetite we are seeing in the UK residential market and, in particular, in social and affordable housing with investment strategies aligned to clear ESG objectives. We look forward to supporting them with this very worthy fund and applying our specialist experience in both this field and the wider build-to-rent sector, to assist with their ongoing administration requirements.”