Unique real estate fund is the result of a
$7.5 billion collaboration with BCI
and QuadReal
TORONTO, Nov. 1, 2019 /CNW/ - RBC Global Asset Management
Inc. (RBC GAM Inc.) today announced the first closing of the RBC
Canadian Core Real Estate Fund (the Fund), which attracted more
than $1.25 billion in equity
commitments from institutional and individual investors, materially
exceeding subscription targets.
RBC GAM Inc. announced the creation of the Fund in March 2019 together with British Columbia
Investment Management Corporation (BCI) and QuadReal Property Group
(QuadReal). This solution provides investors with access to one of
Canada's highest quality, largest
and most diversified commercial real estate portfolios. In order to
create long-term alignment with investors, BCI will maintain a 50%
ownership position in each property held by the Fund, and QuadReal
will continue to manage the properties, ensuring a seamless
continuity of service and management and a disciplined focus on
asset-level performance.
The vend-in of the Fund's interest in the initial portfolio will
take place over three additional subscription tranches, with the
next scheduled to close in the second half of 2020. This series of
tranches will form the base of the RBC Canadian Core Real Estate
Fund and provide a defined, multi-year growth trajectory. Once
these tranches are complete, the Fund will have an equal ownership
position with BCI in a core real estate portfolio valued at over
$7.5 billion. As the Fund is an
open-ended real estate vehicle, its management team also intends to
be actively engaged in seeking other core Canadian investment
opportunities that are consistent with its mandate.
In response to strong market demand, the first tranche of the
Fund has been allocated across a broad range of individual and
institutional investors.
"The RBC Canadian Core Real Estate Fund has attracted
exceptional client interest, demonstrating strong demand for a
differentiated real estate solution backed by three Canadian
industry leaders," said Damon
Williams, CEO of RBC GAM. "The fact that the Fund's first
tranche generated deep interest from a broad spectrum of investors
is a testament to the quality of the assets and the strength of the
relationship between RBC GAM, BCI and QuadReal."
"The successful launch of the Fund establishes a strong
foundation with RBC GAM for an innovative collaboration to deliver
on the benefits of active asset management," said Dennis Lopez, CEO of QuadReal. "Working with RBC
GAM aligns with our strategy to establish key partnerships and
invest in exceptional Canadian assets while diversifying the global
real estate program that we manage on behalf of BCI and its
clients."
"QuadReal's experience and creativity, with a strong local
presence across Canada, drives
portfolio performance, to deliver returns BCI's clients expect,"
said Remco Daal, President, Canadian
Real Estate, QuadReal. "The team shares an unwavering commitment to
sustainability and to seamless and attentive service to tenants and
residents."
This information is not intended to be an offer or
solicitation to buy or sell securities. The Fund is offered by
RBC Global Asset Management Inc. RBC GAM Inc. is a member of the
RBC GAM group of companies and an indirect wholly owned subsidiary
of Royal Bank of Canada.
Investments in alternative funds are speculative and involve
significant risk of loss of all or a substantial amount of your
investment. Investors should consult their professional advisors
and consultants regarding any tax, accounting, legal or financial
considerations before making a decision as to whether the Fund is a
suitable investment for them.
About RBC Global Asset Management
RBC Global Asset
Management (RBC GAM) is the asset management division of Royal
Bank of Canada (RBC) and includes
money managers BlueBay Asset Management and Phillips, Hager &
North Investment Management. RBC GAM is a provider of global
investment management services and solutions to institutional,
high-net-worth and individual investors through separate accounts,
pooled funds, mutual funds, hedge funds, exchange-traded funds and
specialty investment strategies. The RBC GAM group of companies
manage approximately $450 billion in
assets and have approximately 1,400 employees located across
Canada, the United States, Europe and Asia.
About BCI
With $153.4
billion of managed assets, British Columbia Investment
Management Corporation (BCI) is a leading provider of investment
management services to British
Columbia's public sector. We generate the investment returns
that help our institutional clients build a financially secure
future. With our global outlook, we seek investment opportunities
that convert savings into productive capital that will meet our
clients' risk/return requirements over time. We offer investment
options across a range of asset classes: fixed income; mortgage;
public and private equity; real estate; infrastructure; and
renewable resource.
About QuadReal
Headquartered in Vancouver, Canada, QuadReal Property Group is
a global real estate investment, operating and development company.
QuadReal manages the real estate and mortgage programs of British
Columbia Investment Management Corporation (BCI), one of
Canada's largest asset managers
with a $153.4 billion portfolio.
QuadReal manages a $37.6 billion
portfolio spanning 23 Global Cities across 17 countries. The
company seeks to deliver strong investment returns while creating
sustainable environments that bring value to the people and
communities it serves. Now and for generations to come.
QuadReal: Excellence lives here.
SOURCE RBC Global Asset Management