Danish PFA adds €200m and widens BMO logistics mandate

Danish pension fund PFA Pension has increased the mandate awarded to BMO Real Estate Partners to acquire European logistics properties by an additional €200 million. The increase creates a total investment capacity of over €400 million.

BMO Real Estate Partners is the pan-European property investment and asset management specialist arm of BMO Global Asset Management (EMEA). Its mandate from PFA began in July 2019 with an initial equity commitment of €100 million focused on value-add and core+ logistics developments in France.

Initial acquisitions included two properties in Bassens (pictured), 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.

The €200 million additional equity commitment expands BMO’s brief to include Core, Core+ and Value-Add investment opportunities across Continental Europe, and the focus is expanded to include Spain and Italy.

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

BMO Real Estate Partners said that the strategy will be to source, acquire and manage a combination of standing logistics properties, manage-to-core and build-to-core investments located near city centres, ports and airports or within established logistics clusters.

The focus will be on urban warehouses, cross-docking facilities and Grade-A warehouses with single or multi-tenant occupancy.