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.
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.
© 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
BMO REP acquires the iconic Fontaine Gaillon property in Paris for its pan-European retail fund - New 10-year lease agreed with Moma Group for new restaurant concept
BMO Real Estate Partners (BMO REP), part of Canada’s BMO Financial Group’s £189 billion1 Global Asset Management business, announces that it has completed the acquisition of the famous Fontaine Gaillon restaurant in Paris from French actor Gerard Depardieu on behalf of its pan-European retail property investment fund.
BMO Real Estate Partners (BMO REP), part of Canada’s BMO Financial Group’s £189 billion1 Global Asset Management business, announces that it has acquired a hotel in Bury St Edmunds for £9.5 million on behalf of the BMO UK Property Fund (the “Fund”). It is the first hotel asset to be added to the Fund’s portfolio as it looks to grow its exposure, in line with its investment criteria, to the strengthening alternatives sector. The asset provides a 5% plus income return with inflation uplifts.
In line with announcements made last year, BMO can today announce that its two F&C branded property investment trusts will align to the BMO brand. The two commercial property investment trusts, managed by BMO Real Estate Partners, have received shareholder approvals for their name changes.
BMO Real Estate Partners (BMO REP), part of Canada’s BMO Financial Group’s £198 billion1 Global Asset Management business, today announces that it has completed two UK acquisitions and exchanged on a forward purchase, on behalf of a segregated mandate client, for a combined value of £24.3 million. These transactions represent the prompt reinvestment of proceeds from the recent opportunistic disposals undertaken on behalf of the same client.
BMO Real Estate Partners expands Industrial & Logistics team with Asset Manager appointment download
BMO Real Estate Partners expands Industrial & Logistics team with Asset Manager appointment
News from IPE Real Assets
Renamed company raises €135m for high street retail strategy
Company to rebrand next month to BMO Real Estate Partners
F&C UK Property Fund assets the assets for £49.4m
FCPT bought Hurricane 47in Liverpool from Commercial Development Projects for £4m
Best Value Europe II plans to reach gross asset value of €500m and then grow to €1bn
White Papers / Research from BMO Real Estate Partners
BMO REP is predicting single digit all-property total returns under-pinned by the income return over the five years to end-2023.
UK Property Market Trends download
UK Property Market Trends
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 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.
Analysis from IPE Real Assets
The retail markets in the US appear to be in dire straits. Is this a reason to be bearish on European retail? No, argues Ian Kelley
The big are getting bigger and the small are specialising. What does this mean for the mid-sized manager? Richard Lowe investigates
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