BMO Real Estate Partners (BMO REP), acting on behalf of its pan-European retail property investment fund, has purchased a prime luxury retail property located on rue du Faubourg Saint-Honoré in Paris. The approx. 1,000 m² property has been acquired in Grade A condition, having been entirely refurbished in 2012, by way of a sale-leaseback transaction and based on a net initial yield of 3.40%.
In line with the fund strategy, the asset is situated in an ultra-prime location in direct proximity to the Hermès flagship store and with Rue du Faubourg Saint-Honoré is widely regarded as one of the most prestigious addresses in the world, due to the presence of virtually every major global luxury brand.
Ian Kelley, Fund Director Europe at BMO Real Estate Partners commented: “This latest investment is a true trophy addition to our portfolio, and represents the fund’s 4th retail property in Paris, one of the world’s most sought-after ultra-prime shopping destinations. The outlook for both the city and this asset specifically are very positive.”
The transaction was sourced off-market by Draco Partners. BMO REP was also advised by Lasaygues, King & Spalding and Taxand. The vendor was advised by Wargny-Katz and Degroux Brugere.
