BMO REP to invest in European logistics properties for Danish pension fund

BMO REP to invest in European logistics properties for Danish pension fund
BMO REP Logistics - Bordeaux – Bassens

BMO Real Estate Partners (BMO REP) has expanded its European logistics mandate with an additional €200m allocation from Danish pension fund PFA Pension, allowing for a total investment capacity of over €400m.

The mandate began in July 2019 with an initial equity commitment of €100m focused on value-add and core+ logistics developments in France.

Initial acquisitions included two properties in Bassens, next to the port of Bordeaux, a cross-docking facility in Corbas, Lyon, and the renovation of a last-mile logistics warehouse in Fretin, Lille.

Following the deployment of the initial capital, the mandate has been increased with an additional €200m equity commitment to include Core, Core+ and Value-Add investment opportunities across Continental Europe with a focus on France, Spain and Italy.

The two mandates, including leverage, allow for a total investment capacity of over €400m, said BMO REP.

”The strategy will be to source, acquire and manage a combination of standing logistics properties and manage-to-core / build-to-core investments located near city centres, ports and airports or within established logistics clusters. Moreover, the focus will be on Urban Warehouses, Cross-Docking facilities and Grade-A warehouses with single or multi-tenant occupancy, offering an attractive diversification of locations and occupiers,” the company said.

Ian Kelley, Managing Director, Head of France, Benelux and Southern Europe at BMO REP said, “Our partnership with PFA Pension is a strong endorsement of our tailored service offering and ability to invest across the entire risk spectrum within the logistics sector and in multiple geographies. Having deployed the initial tranche of capital efficiently, through the sourcing of off market opportunities via our deep network of market relationships, the investments have outperformed with successful leasing initiatives illustrating our expertise and the capabilities of our team. We look forward to continuing this track record with the extended mandate.”