Founded in 2005, BMO Commercial Property Trust, formerly known as F&C Commercial Property Trust Limited, is a closed-ended investment company that aims to deliver ordinary shareholders with high level of income with income and capital growth by investing in a diversified UK commercial property portfolio. The company’s shares have a premium listing on the Official list of the UK listing authority and are traded on the Main Market of the London Stock Exchange as LON: BCPT.
The company has appointed BMO Investment Business Limited as its investment manager and BNO REP Asset Management Plc as its Property manager. Both the managers are the subsidiary of BMO Asset Management Plc. the company’s policy is to invest in a diversified portfolio of freehold and long leasehold UK commercial properties sector that includes retail, office and industrial. It also has an exposure to the alternative sector that includes residential property, leisure and student housing.
The company invests in properties that are believed to generate long-term income and capital growth for shareholders. investments are made before analysis of sector, lease length, geographic prospects, initial and equivalent yield, tenant covenant strength, ESG risk and opportunity factors and the potential for alternative uses and /or development or redevelopment of the property. It has not set maximum investment limit on geographic exposures but maximum limit in office property should be 50%, retail should be 65% and industrial should be 40% at any time and no single property should constitute more than 15% of total assets and the five largest properties should not exceed 40% of total assets. Short term lease properties with less than 60 years remaining should not be more than 10% of total assets at the time of acquisition.
The company may invest maximum 15% in indirect property funds at the time of acquisition, which invest mainly in UK property, but these investments should not be more than 20% of the total assets at any subsequent date. It may invest cash, held by it for working capital and awaiting investment in gilts, cash deposits and money market funds. The company may use borrowing up to 50% of total assets to enhance return, although it tries to limit to a maximum of 35% of total assets at the time of borrowing.
Trafalgar Court, Les Banques PO Box 255 GY1 3QL Guernsey