BMO Real Estate Partners held the first close of its approximately £500 million BMO UK Housing Fund.

Social impact investor Big Society Capital Ltd. was one of the cornerstone investors of the fund.

BMO will use the fund to provide sustainable rental properties to low- to middle-income households in the U.K. It will be governed by an ESG impact policy supervised by an independent advisory group.

The real estate investment manager will work with its development and operating partner Home Group Ltd. in the execution of the fund's housing strategy.

BMO will be investment adviser to the fund, while Home Group will source sites with the appropriate planning consents and form part of the platform for property management and leasing operations.