BMO Real Estate Partners (BMO REP), the pan-European property investment and asset management specialist that is part of Canada’s BMO Financial Group’s £189 billion Global Asset Management business, announces the acquisition of two prime luxury retail properties in Italy for €150m, on behalf of its pan-European retail property investment fund. The fund focuses on high-quality retail properties in prime shopping streets within major European cities and is aimed at institutional investors.
The first acquisition, acquired from the Kering Group in a sale-leaseback transaction, comprises a c.1,500 sqm recently refurbished grade-A high street retail property in Milan. The asset is spread across four floors and is fully leased to Brioni, an Italian menswear couture house. The property boasts a prime location on Via Gesu 2 in the heart of Quadrilatero Della Moda, Milan’s luxury fashion district, and sits adjacent to a Cartier outlet and the Four Seasons Hotel.
The Fund also acquired another luxury retail property in Rome leased to a brand within the LVMH group and located on Via Condotti, one of the world’s most renowned high-street retail locations. The 600 sqm property is in prime condition and is spread across ground and upper floors.
Ian Kelley, Fund Director, Europe at BMO Real Estate Partners commented: “These two latest additions to our portfolio are a clear demonstration of our capacity to source and deliver rare investment opportunities across Europe for our clients. Both properties are highly sought retail investments, holding ultra-prime locations in two of Italy’s leading cities, and offering the Fund an increased exposure to the country’s growing luxury sector. Given the positive outlook for luxury retail in both Milan and Rome, we are confident in our ability to generate attractive returns from each asset for our investors.”
MF Studio Legale advised BMO REP on both transactions.
Source : Company