Le mie ricette per la real estate communityBMO Real Estate Partners (BMO REP), the pan-European property investment and asset management specialist that is part of Canada’s BMO Financial Group’s £216 billion Global Asset Management business, announces the first close for its newly developed UK housing strategy. The BMO UK Housing Fund (the Fund) will target a circa 6% return and 4.5% annual distribution yield through the provision of high quality, purpose-built mid-market rental homes for local key workers. The Fund, which is launching in order to take advantage of immediate opportunities within its circa £250 million investment pipeline, is targeting around £500 million of equity to deliver a core, inflation linked income-focused portfolio, which will be underpinned by an innovative ESG Impact Policy overseen by an independent advisory group.
The aim of the new Fund is to address a distinct gap in the UK housing market by offering high quality, sustainable, community based rental property, targeted at low to middle income households whose needs are not currently being met and where a real growth opportunity exists, given the UK housing market fundamentals. Investment will be governed by a robust social agenda, aligning with rigorous ESG and impact investment objectives which have already attracted highly regarded and discerning impact investors, including Big Society Capital. The Fund’s ESG Impact Policy creates a strong governance structure to guarantee a product that satisfies occupier needs today and in the future, while also prioritising environmental considerations and promoting sustainable living, ultimately creating thriving communities for the long term.
BMO REP will work alongside its development and operating partner, Home Group, to invest in purpose built, quality housing stock that improves the options to rent for working households and complements existing market participants (operators launching premium rental accommodation and social housing provided by Registered Providers and Local Authorities).
Home Group, which has been in existence for more than 80 years, is one of the UK’s largest providers of high-quality integrated housing, health and social care. BMO REP will act as Investment Advisor to the Fund, responsible for capital raising and governance, as well as the underwriting and purchase of appropriate sites and assets, forward funding any construction; Home Group will be responsible for sourcing sites with the appropriate planning consents, as well as forming part of the platform for the ongoing property management and leasing operations.
BMO REP has been investing in and managing UK property for over 50 years and currently manages £6.2 billion of property across Europe, including £850 million of residential property in the mature German rental market. It has a strong track record in creating and managing real estate portfolios that deliver long term sustainable income and are built from quality, long term investments underpinned by strong fundamentals.
Source : BMO REP