A unique opportunity for institutional
clients to invest in a portfolio of core Canadian commercial real
estate assets
TORONTO, March 12, 2019 /CNW/ - RBC Global Asset
Management Inc. (RBC GAM) today announced an agreement with British
Columbia Investment Management Corporation (BCI) and QuadReal
Property Group (QuadReal) to make one of Canada's most diversified commercial real
estate portfolios available to institutional investors.
This venture will combine the strength and expertise of three
market leaders:
- RBC GAM, Canada's largest fund
manager and one of the largest managers of Canadian pension
assets1 through its Canadian institutional business,
PH&N Investment Management;
- BCI, a global investment manager and one of Canada's largest pension plan managers;
and
- QuadReal, one of Canada's most
respected real estate service providers and developers, established
by BCI to expand and manage its global real estate portfolio.
This initiative will create a portfolio of over 40 of BCI's
existing Canadian real estate assets, with a total value in excess
of $7 billion. Institutional
investors may participate by investing in an income-producing
Canadian commercial real estate strategy through the RBC Canadian
Core Real Estate Fund ("the Fund"). The Fund will be established
and managed by RBC GAM and is expected to be open for investment in
the third quarter of 2019. The Fund will aim to deliver an
attractive income stream and total returns with limited volatility,
along with inflation protection and low correlation to other asset
classes.
The Fund is expected to become an equal owner with BCI in all of
the portfolio's properties through a multi-stage vend-in process.
The initiative supports BCI's objective to internationally
diversify its real estate portfolio while maintaining a strong
domestic core. QuadReal will continue to manage the properties on
behalf of BCI and the Fund, ensuring a seamless continuity of
management and a disciplined focus on asset level performance.
"Institutional clients are increasingly looking to alternative
investment opportunities, and especially private market assets, to
help them meet their long-term goals," said Damon Williams, CEO of RBC GAM. "With the needs
of clients in mind, we are excited to partner with BCI and QuadReal
to open to investors a truly exceptional portfolio of Canadian real
estate assets. Moreover, BCI's commitment to the retention of a 50
percent interest in each asset ensures their full alignment with
investors, which we believe is fundamental to the long term success
of this opportunity."
"Over many years, we have diligently acquired and developed a
portfolio of premium Canadian properties on behalf of our pension
and accident fund clients," said Gordon J.
Fyfe, CEO/CIO of BCI. "BCI's real estate portfolio now
exceeds $27 billion in value and as
we diversify into global markets, its Canadian core will always be
the foundation of our clients' portfolio. The opportunity to
partner with a like-minded, long-term focused institution such as
RBC Global Asset Management is extremely compelling."
"QuadReal is an active global real estate manager and developer
for BCI and its clients, and partnerships are vital to the
successful execution of our strategy," said Dennis Lopez, CEO of QuadReal. "This includes
globally diversifying our real estate portfolio. In Canada, we look forward to working side by
side with RBC Global Asset Management. Fundamental to our business
strategy is providing a market leading service experience for our
tenants and residents and a devotion to exemplary advisory
management."
This unique opportunity is subject to the execution of
definitive agreements and certain conditions including capital
commitments to the strategy.
The RBC Canadian Core Real Estate Fund will initially be open to
institutional and other qualified investors. RBC GAM is actively
exploring opportunities to bring the Fund and related strategies to
market to serve the needs of other client segments including
individual accredited investors and advisors.
This information is not intended to be an offer or
solicitation to buy or sell securities. The Fund is intended for
qualified investors only and not to any other category of investor.
The Fund will be 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 investment 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 mentioned in this material 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
institutional 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 $425 billion in assets and have approximately
1,400 employees located across Canada, the United
States, Europe and
Asia.
About BCI
With $145.6
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; mortgages;
public and private equity; real estate; infrastructure; and
renewable resources.
About QuadReal
Headquartered in Vancouver, Canada, QuadReal Property Group is
a global real estate investment, operating and development
company.
The company's $27.4 billion
portfolio spans 23 Global Cities across 17 countries. QuadReal was
established to manage the real estate program of British Columbia
Investment Management Corporation (BCI), one of Canada's largest asset managers with a
$145.6 billion portfolio.
QuadReal aims to deliver prudent growth and strong investment
returns, and to create and sustain environments that bring value to
the people and communities it serves. Now and for generations
to come.
QuadReal: Excellence lives here.
www.quadreal.com
1 As of 9/30/2018, RBC Global Asset Management
Inc. is Canada's largest fund
company by assets under management (IFIC) and the third largest
manager of Canadian pension assets (Benefits Canada).
SOURCE RBC Global Asset Management