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BMO REP acquires trio of assets for £24.3 million

Seeking to redeploy capital into new income and growth assets, BMO Real Estate Partners (BMO REP) has acquired three UK assets worth £24.3 million (€27.8 million) on behalf of a segregated mandate client. The transactions, which include two completed acquisitions and a forward purchase, 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 on 149 St. Vincent Street in Glasgow’s Central Business District which was purchased for £9.75 million (c. €11.1 million). The prime located property was built in the 1930s but underwent a comprehensive refurbishment in 2016, which retained its attractive period exterior, and offers almost 40,000 sqft of prime office space arranged over nine floors. The asset has been acquired 64% let to strong covenants, offering immediate opportunities to bring in new tenants at a time when availability of Grade A stock in the Scottish city is at historic lows.

The remaining investments increase exposure to the strongly performing South East industrial market and include a warehouse property in Horsham, near Gatwick airport, and the forward-purchase of an industrial scheme in Milton Keynes, which were purchased for £7.5 million (c. €8.6 million) and £7.0 million (c. €8 million) respectively. The Horsham asset is a single-let distribution warehouse within the strategically located on 151 Silbury Boulevard in the Oakhurst Business Park extending to 48,757 sqft, let to Macfarlane Group UK. The Milton Keynes scheme, known as Velocity and being developed by Hampton Brook, is due to complete in June 2019 and will comprise two separate warehouse units totalling 48,000 sqft. The scheme is already part pre-let and will provide a new high specification stock in an undersupplied market.

“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,” Matthew Howard, Director, Property Funds at BMO Real Estate Partners commented.