BMO Real Estate Partners

2017 Real Estate Top 100 ranking: 96http://www.bmorep.com/

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Manager Details

BMO

Corporate overview

Our sole purpose is to create and manage successful property investment portfolios. We offer a selection of property investments and asset management opportunities across a wide range of real estate markets across Europe. We have been managing property for over 50 years and investors can access our expertise through a number of structures including listed investment companies, open-ended funds, segregated mandates and single asset deals.

  • Specialist – a real estate specialist offering entrepreneurial spirit blended with sophisticated structured institutional practices;
  • People – highly experienced and well-regarded team maintaining strong relationships with investors, shareholders, industry contacts and occupiers – key to managing this personal asset class;
  • Pipelines – extensive network of contacts, strong local track records and in-depth experience ensure unique access to on and off-market transactions;
  • Active – pro-active management and a research-driven investment approach leads to continuous review of processes, future themes, opportunities and assets to generate value and create sustainable income;
  • Platform – European presence provides opportunity to expand, while delivery returns to investors.

We also believe in investing responsibly and that responsible property investing (RPI) is about managing future risks without compromising performance:

  • Occupier relationship – evolving to sustain appeal to the modern occupier;
  • Reduced income risk – greater occupier retention;
  • Preserve capital values – resilient income enhances value;
  • Enhanced property liquidity – attractive investment with sound fundamentals.

Sector forecasts

INDUSTRIAL: European logistics has become increasingly favoured by investors, helped by its higher yields and a perceived shift to distribution from the growth of online retailing. Occupier demand is expected to remain robust but increased new supply may act to slow the pace of rental growth. There are few signs of investor appetite waning and yields are touching new lows. We believe that this is an attractive market segment offering sound investment performance but stock selection is critical.

OFFICE: The occupational market is continuing to benefit from employment growth. With supply still constrained in many core business districts, rental growth is expected to persist. We anticipate that the established mainland office locations will remain in favour with investors, and with cities such as Berlin moving up the ranks. London has proved remarkably resilient despite the Brexit vote but the outlook may be less certain. We see Paris and Frankfurt as major beneficiaries of job relocations to Europe in the wake of Brexit.

RESIDENTIAL: Residential investment has been a mainstream sector for institutional investment in France, Germany and the Netherlands for many years. Its appeal is now broadening, particularly in the UK, where “build to rent” schemes are supplementing the more traditional investment options. Given demographic trends and the move to greater urbanisation, this sector is likely to continue to attract investors. There needs to be awareness of potential policy changes, local market conditions and planning constraints, so local, specialist expertise is vital.

RETAIL: The top retail locations in mainland Europe are continuing to demonstrate resilience, especially in centres with a strong tourist component. Elsewhere, the picture is less promising and rents are coming under pressure in some secondary locations. The growth of online retailing is likely to continue to affect the market. There are signs that the compression in prime yields may be ending. A period of single-digit total returns is in prospect with France, Spain and Portugal expected to do well, but we are cautious about the outlook for the UK.

OTHER: The past few years have seen specialist segments attract investor interest. This is sometimes a means of accessing a higher yield, or for longer leases or simply to gain access to stock in a tight market. Hotels, student accommodation, care homes and leisure are all now considered fairly mainstream. They can be more complex to manage, requiring detailed knowledge of the operational model, and covenant strength is key. It is an emerging market and benchmark data is limited.

Investment principles & strategy

Property markets can be complex. A long-term horizon and an understanding of the core real estate fundamentals within a location are essential in order to create a quality property portfolio underpinned by sustainable income. Key components of the way we invest include:

  • Sourcing expertise – access to stock on and off market;
  • Buying well – understanding the micro location and macro economic drivers of performance;
  • Active management – enhanced occupier engagement and institutional governance and management to maximise asset potential;
  • Knowing when to sell – disciplined and objective approach to selling at the right time.

Strategic corporate development

BMO Real Estate Partners is a property specialist operating as part of the £195bn BMO Global Asset Management. Established in 1817, our parent company – BMO Financial Group – is a diversified financial services provider based in North America.

The group has more than 45,000 employees and offers products and services to over 12m customers. It has the longest-running dividend pay-out record of any company in Canada, at 189 years. 

COMPLIANCE STATEMENT

© 2018 BMO Real Estate Partners LLP. Registered in England and Wales with num- ber OC338377. Registered Office: 7 Seymour Street, London W1H 7JW. BMO REP Asset Management Plc is authorised and regulated by the Financial Conduct Authority. BMO Real Estate Partners LLP, BMO REP Asset Management Plc and BMO REP Property Management Limited are members of the BMO Financial Group and are subsidiaries of the Bank of Montreal.

News from BMO Real Estate Partners

News from IPE Real Assets

View more News from IPE Real Assets

White Papers / Research from BMO Real Estate Partners

  • Responsible Property Investment download

    BMO REP’s Environmental, Social and Governance Committee, which convenes on a quarterly basis, oversees the implementation of, and compliance with, our policy framework, together with some of the underlying regulatory requirements.

  • UK Property Market Trends download

    We are predicting 4.7% pa all-property total returns in the five years to end 2022. The property market continues to deliver capital and rental growth and an all-property annual total return of 11.3%.

  • UK Market Review & Outlook: November 2017 download

    UK all-property total returns were 2.5 per cent in the three months ended September 2017, as the market has readjusted, following the initial shock of the EU referendum result.

  • UK Market Review & Outlook: February 2017 download

    All-property total returns were 2.2 per cent in the three months ending December 2016, according to the IPD Quarterly Index for standing investments. The 12 month total return was 3.5 per cent.

Analysis from IPE Real Assets

  • Investment Management: The squeezed middle

    The big are getting bigger and the small are specialising. What does this mean for the mid-sized manager? Richard Lowe investigates

  • Sustainability: Green and gold

    Refurbishing SME office space to incorporate environmental features can be good for the planet, good for tenants – and good for investor returns, writes Simon Ringer

Head Office
5 Wigmore Street
London
W1U 1PB
United Kingdom
Contact
Angus Henderson Tel. 020 7499 2244
Company website:
http://www.bmorep.com/
Parent Company:
BMO Global Asset Management
Year Founded:
1994
No. of investment offices worldwide:
4

What’s new

  • responsible property investment

    Responsible Property Investment

    White papersTue, 7 Aug 2018

    BMO REP’s Environmental, Social and Governance Committee, which convenes on a quarterly basis, oversees the implementation of, and compliance with, our policy framework, together with some of the underlying regulatory requirements.

  • BMO Real Estate Partners’ strategy named Best European Retail Fund at PIE European Property Awards

    Asset Manager NewsWed, 4 Jul 2018

    BMO Real Estate Partners has been recognised at the Property Investor Europe European Property Awards in London, where the first in its series of pan-European high street retail strategies was named Best European Retail Fund.

  • uk property market trends

    UK Property Market Trends

    White papersWed, 30 May 2018

    We are predicting 4.7% pa all-property total returns in the five years to end 2022. The property market continues to deliver capital and rental growth and an all-property annual total return of 11.3%.

  • BMO Real Estate Partners launches Best Value Europe II and completes third acquisition for the Fund

    Asset Manager NewsTue, 15 May 2018

    BMO Real Estate Partners today announces the launch of the second fund in its Best Value Europe series, Best Value Europe II, following seed commitments from repeat investors. This ensures BMO REP can continue capitalising on the strong pipeline of investments already established for the Fund, following its initial acquisitions of two prime assets in Verona and Madrid for a total of circa €39 million.

  • BMO REP acquires prime retail asset on Paris’s Rue du Faubourg Saint-Honoré

    Asset Manager NewsThu, 8 Mar 2018

    BMO Real Estate Partners announces the acquisition of a prime luxury retail property located on rue du Faubourg Saint-Honoré in Paris’s 8th Arrondissement, on behalf of its pan-European retail property investment fund. The fund focuses on selective, high-quality retail investment opportunities in prime shopping streets within major European cities and is aimed at institutional investors.

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