BMO Real Estate Partners (BMO REP) has acquired a high street asset in a prime location in Cologne city Centre. The transaction marks a maiden investment in Germany for BMO REP’s Best Value Europe II Fund (BVE II), which focuses on selective, high quality, prime high street retail properties within a top tier or dominant European cities. The property comprises a 1,500m² modern flagship store located at Hohe Straße 84–86. Completed in 2017, it is a long-term let to international lingerie and swimwear brand, Hunkemoller.
Assia Amore, European Fund Manager at BMO Real Estate Partners said: “This first acquisition in Germany for BVE II further strengthens the diversification of the portfolio, with the addition of a liquid and resilient market in Cologne. E-commerce penetration is reaching record highs, accelerated by the COVID-19 pandemic, and alongside this our conviction in the bifurcation of retail property in favour of ultra-prime locations is being reinforced. As the economies of major European cities begin to recover, we believe that a portfolio of carefully selected assets with strong tenant covenants is well placed to deliver attractive capital and income returns.”
