BMO Real Estate Partners (BMO REP), the pan-European property investment and asset management specialist has announced the first close for its newly-developed UK housing strategy. The BMO UK Housing Fund targets a c.6% return and 4.5% annual distribution yield through the provision of high quality, purpose-built mid-market rental homes for local key workers. The Fund is targeting around £500 million of equity to deliver a core, inflation-linked income-focused portfolio, which will be underpinned by an ESG Impact Policy overseen by an independent advisory group.
The new fund aims to address a gap in the UK housing market by offering high quality, sustainable, community-based rental property, targeted at low to middle income households whose needs are not currently being met. Investment will be governed by a robust social agenda, aligning with rigorous ESG and impact investment objectives which have already attracted highly regarded and discerning impact investors. BMO REP will work alongside its development and operating partner, Home Group, to invest in purpose built, quality housing stock that improves the options to rent for working households and complements existing market participants.