BMO Real Estate Partners sells three assets for €60.4m (GB)

BMO Real Estate Partners completes €60.4m disposal of mature assets (GB)

BMO Real Estate Partners (BMO REP) has completed the disposal of three assets, on behalf of a segregated mandate client, for a total consideration of €60.4m (£53.2m), materially above latest book valuations. The opportunistic disposals are in line with the strategy for the Fund and provide an opportunity to recycle the capital into new income and growth opportunities.

 

The disposals comprise the sale of a c. 240,600ft² industrial unit in Bridgwater, Somerset, which was sold to sub-tenant EDF Energy for €18.4m (£16.25m). The freehold property, on a head lease to the Co-Operative Group Food Limited who have vacated, also comprises a c.19,100ft² vehicle maintenance unit with substantial loading and goods yard. EDF Energy uses the facility to support the Hinckley Point power station development nearby.

 

The second disposal is of a freehold c.90,000ft² purpose-built and fully enabled data centre set on a 3.4-acre site on the Aztec West business park in Bristol, sold for €10m (£8.8m). The property has been owned by clients of BMO REP since it was developed in 1992 and is fully let to Capgemini UK Plc for another 4.5 years. 

 

The third disposal is of St Marks Court, a c.145,000ft² freehold office building located in Horsham, which was sold for €31.9m (£28.15m). The asset was originally acquired by clients of BMO REP in 2014, who previously owned and sold the building. The building is let to RSA Insurance who recently regeared its lease to 2025 and has sub-let part of the building.

 

Matthew Howard, Director, Property Funds at BMO Real Estate Partners commented: “These strategic disposals follow a review of the portfolio where we believed it was an opportune time for us to realise the value created from each of these mature assets. We will be redeploying the capital into new income and growth assets where we see attractive long-term prospects to continue generating value on behalf of our client.”

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