BMO Real Estate Partners announced the purchase of a high end department store in Prague, which is occupied by Van Graaf, on behalf of 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.
The asset is located on Wenceslas Square 17, Prague’s main mass-market shopping street, and comprises 12,000 sqm of rental area over six storeys. This acquisition will allow the fund to diversify its portfolio exposure to Prague all the while benefitting from a secured income stream within 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 million. The fund was launched in October 2015 having raised nearly €400 million of capital and focuses on high quality retail properties in prime shopping streets within major European cities.
Jerome Feltham Property Advisory, Kinstellar, Atoz and White & Case advised BMO Real Estate Partners on the transaction.
BMO Real Estate Partners is a pan-European property investment and asset management specialist that is part of Canada’s BMO Financial Group’s £189.3 billion AUM Global Asset Management business, As at 30 June 2017 it has €6.7 billion of assets under management across core European markets.