BMO REP acquires Van Graaf department store in Prague – EuropaProperty

BMO Real Estate Partners (BMO REP), the pan-European property investment and asset management specialist that is part of Canada’s BMO Financial Group’s £189.3 billion AUM Global Asset Management business, announces the purchase of a high end depart occupied by Van Graaf, on behalf of investors in its pan-European retail property investment fund. BMO Real Estate

Partners acquired the building from MTK Developments, a Vienna-based European real estate firm specializing in value-added investments.

The asset is located on Wenceslas Square 17, Prague’s main mass-market shopping street, and comprises 12,000 sqm of rental area over six storeys. This acquisition will allow the F fund to diversify its portfolio exposure to Prague all the while benefit income stream within a fixed long-lease term of over 28 years.

The transaction, which is BMO’s eighth acquisition for the Fund, brings its total portfolio value fund was launched in October 2015 having raised nearly €400 million of capital and focuses on high-quality retail properties in prime shopping streets within major European cities.

Ian Kelley, Fund Director, Europe at BMO Real Estate Partners commented: “This is one of the best high street retail properties in Prague. The long-term lease provides secure, sustainable income from a strong covenant within a market offering strong economic and rental growth forecasts.”

Delf Stüven, Chairman, MTK Developments said, “We are delighted to have completed this transaction in cooperation with BMO and look forward to a continued collaboration.”