BMO Real Estate Partners launches new residential fund focused on major European cities
BMO Real Estate Partners (BMO REP), a pan-European property investment and asset management arm of BMO Global Asset Management, has held the first close of its newly launched BMO Residential Europe Fund, which has a target investment volume of EUR800 million.
The Fund, categorised as article 8 under the new EU Sustainable Finance Disclosure Regulation (SFDR), provides international institutional clients access to a portfolio of properties across the premium, mid-market and affordable residential sectors, including senior living and best accessibility in metropolitan areas. The Fund actively promotes and enables the delivery of sustainable rental homes, which are carbon aware and community orientated, and will target a distribution yield of up to four percent.
Alexander Ernst, who joined BMO REP in Germany as Director of Fund Management earlier this year, will manage the new Fund and will leverage talent from across BMO REP’s international footprint to invest in a portfolio of properties located in strategically important cities across Germany, France, the Netherlands, Austria, Italy and Spain. The new Fund will also be aligned to BMO REP’s ESG and impact investment objectives.
Iris Schöberl, Managing Director and Head of Institutional Clients at BMO Real Estate Partners Germany, says: "We continue to witness population growth across European metropolitan regions and major cities. With this growth comes increased demand for affordable, sustainable housing, especially in urban locations. Using our expertise in this area we believe we are able to create a portfolio of properties to generate both stable returns for clients as well as meet ESG standards.”
Luxemburg Investment Solutions SA will act as the capital management company.