PFA Pension approves €200m commitment

The Danish public pension fund has backed BMO's core European logistics fund.

Institution: PFA Pension
Headquarters: Copenhagen, Denmark
AUM: DKr620 billion
Allocation to alternatives: 9.6%

PFA Pension has committed €200 million to BMO European Core Logistics Mandate, a contact at the pension informed PERE.

BMO Real Estate Partners launched the vehicle in July 2019 and has raised €400 million in investor capital. The mandate will include core, core-plus and value-add investment opportunities across continental Europe, with a focus on France, Spain and Italy.

The strategy will be to source, acquire and manage a combination of standing logistics properties and manage-to-core/build-to-core investments located near city centres, ports and airports, or within established logistics clusters.

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

PFA Pension allocates DKr59.5 billion ($9.04 billion; €8 billion) to alternative investments, comprising 9.6 percent of its investment portfolio.

As illustrated below, PFA Pension’s private real estate commitments have been primarily to European vehicles employing a variety of strategies.

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