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BMO Real Estate Investments Ltd - Property Transactions

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To: Company Announcements

Date: 5 October 2021

Company: BMO Real Estate Investments Limited

LEI: 231801XRCB89W6XTR23

Subject: Property Transactions

BMO Real Estate Investments are pleased to announce that the Company has acquired two freehold properties for a total of £19.4m, secured off-market and at an accretive combined yield.

The acquisitions represent the successful delivery of the key near-term objective to recycle proceeds realised from a number of strategic disposals from the High Street and Office sectors into the Retail Warehousing and Industrial sectors, targeted for their robust occupational demand, income resilience and favourable performance prospects.

The first property, an industrial asset in Colnbrook, Heathrow, was acquired in September for £12.1 million and is highly reversionary with a net initial yield of 4.0 per cent. The asset is fully let to a vehicle servicing centre for a further 3 years in a market that is characterised by very tight supply dynamics, offering opportunity for value creation through near term asset management.

The second property, also acquired in September, comprises a retail warehousing scheme in Banbury, Oxfordshire, occupied by home-improvement tenants Wickes and Topps Tiles for a further 4.2 years. The property was acquired for £7.3 million, reflecting a net initial yield of 6.3 per cent. The acquisition enhances the Company’s exposure to the functional, low rented part of the retail warehousing sub-sector, which continues to see material yield compression based on robust occupational fundamentals coupled with the potential for alternative uses, protecting long-term value.

These acquisitions follow the successful disposal of the office property Marlborough House, St Albans, in July 2021, which was sold at a premium of 8 per cent to the Q2 2021 valuation, and at an opportune time in advance of the lease expiry in early 2022.

All Enquiries:

The Company Secretary
Northern Trust International Fund Administrations Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port

Tel: 01481 745001
Fax: 01481 745051

Peter Lowe
Scott Macrae
BMO Investment Business Ltd
Tel: 0207 628 8000
Fax: 0131 225 2375

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