BMO REP acquires Van Graaf department store in Prague (CZ)

BMO REP acquires Van Graaf department store in Prague (CZ)

BMO Real Estate Partners , the pan-European property investment and asset management specialist that is part of Canada’s BMO Financial Group’s  €211.17bn (£189.3bn) AUM Global Asset Management business, announces the purchase of a high end department store in Prague, which is occupied by Van Graaf, on behalf of investors in its pan-European retail property investment fund. BMO Real Estate Partners acquired the building from MTK Developments, a Vienna-based European real estate firm specialising in value-add investments.


The asset is located on Wenceslas Square 17, Prague’s main mass-market shopping street, and comprises 12,000 m² of a rental area over six storeys. This acquisition will allow the fund to diversify its portfolio exposure to Prague all the while benefitting from a secured income stream within a fixed long-lease term of over 28 years.


The transaction, which is BMO’s eighth acquisition for the fund, brings its total portfolio value to over €600m. The fund was launched in October 2015 having raised nearly €400m of capital and focuses on high-quality retail properties in prime shopping streets within major European cities.


Ian Kelley, Fund Director, Europe at BMO Real Estate Partners commented: “This is one of the best high street retail properties in Prague. The long-term lease provides secure, sustainable income from a strong covenant within a market offering strong economic and rental growth forecasts.”


Delf Stüven, Chairman, MTK Developments said: “We are delighted to have completed this transaction in cooperation with BMO and look forward to a continued collaboration.”


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