has achieved a first close on its debut pan-European real estate fund.
German investors committed 鈧�150m to invest in high street retail properties across a number of European markets.
The real estate manager, previously known as F&C REIT, changed its name this year after Canadian bank BMO took over parent company F&C in 2014.
Ian Kelley, hired in May as head of France and fund director for Europe, told 麻豆映画 Real Estate that BMO Real Estate hoped to raise a total of 鈧�350m by the end of the year.
With leverage, the fund would have 鈧�700m to invest.
BMO will not be co-investing in the new fund, but real estate chief executive Nick Criticos said the bank was likely to be a cornerstone investor in some of its future products.
鈥淭hey are extremely supportive of our growth aspirations,鈥� he added.
The new fund, which is close to securing its first acquisition in Paris, is pursuing a core strategy, targeting net returns of 4%.
Kelley said the new fund, structured as a German Spezialfonds, offered investors a 鈥渄efensive鈥� position should European real estate markets eventually correct.
He said high street retail was one of the few sectors in Europe offering rental growth at a time when yields across the markets were converging.
He added that the risk premium was 鈥渘ot being priced in鈥� to some markets.
