BMO Real Estate Partners (BMO REP) has completed two UK acquisitions and exchanged contracts on a forward purchase, on behalf of a segregated mandate client, for a combined value of €27.65m (£24.3m). These transactions represent the prompt reinvestment of proceeds from the recent opportunistic disposals undertaken on behalf of the same client.
The first acquisition comprises Sutherland House, an office asset in Glasgow’s Central Business District which was purchased for €11.1m (£9.75m). The prime located property was built in the 1930s but underwent a comprehensive refurbishment in 2016, while retaining its attractive period exterior. It offers almost 40,000ft² of office space arranged over nine floors. It is currently 64% let.
The remaining investments increase the company's exposure to the strongly performing South East industrial market and include a warehouse property in Horsham, near Gatwick airport, and an industrial scheme in Milton Keynes, which were purchased for €8.5m (£7.5m) and c. €8 (£7m) respectively. The Horsham asset is a single-let distribution warehouse within the strategically located Oakhurst Business Park extending to 48,757ft². It is let to Macfarlane Group UK. The Milton Keynes property, known as Velocity and being developed by Hampton Brook, is due to complete in June 2019 and will comprise two separate warehouse units totalling 48,000ft². The scheme is already part pre-let and will provide a new high specification stock in an undersupplied market.
Matthew Howard, Director, Property Funds at BMO Real Estate Partners commented: “These transactions reflect our disciplined efforts to recycle capital from recent disposals into a mix of both secure and value-add opportunities in core locations, in line with the mandate’s strategy. We consider the entry prices at which we acquired these properties to be attractive, while they each offer compelling long term prospects to continue generating income and growth on behalf of our client.”
