Now is a great time to invest in Canadian CRE as Canada recently experienced the biggest transaction in CRE to date. RBC Global Asset Management, Quadreal Property Group and British Columbia Investment Management Corporation joined forces to introduce the biggest transaction in CRE to date.
The fund is scheduled to launch for investment around the third quarter of this year. Mid-range pension funds and various institutional investors are the fund’s target market. A vital factor of the partnership is that BCI maintains fifty percent interest in each asset of the $7-billion real estate portfolio. The investment will run until 2022.
The Retail Perspective of the Portfolio
Michael Kitt of RBC states that the portfolio consists of a diverse mix of assets including office, retail, residential and industrial. Almost half of all properties are proposed to be office space.
He said that the primary focus is in the eight largest cities of Canada. Between 60 to 70 per cent of the properties are in Vancouver and Toronto.
The portfolio is poised to be one that is viably leased and capable of producing substantial income. The partners aimed to include a diversified portfolio to include a variety of asset class and locations.
Here are a few of the included properties of the fund:
- Marche Central shopping centre (Montreal)
- Bayview at Cole Harbour (Vancouver)
- PwC Tower (Toronto)
- 745 Thurlow (Vancouver)
- Some industrial properties north of Toronto
The Investors Perspective of this Merger
What does this merger mean for investors?
The base of this merger has many points. The most critical point is that Canadian CRE is a prime investment at this time. The Canadian real estate industry is a briskly growing staple in the economy, especially retail real estate.
The fund’s desire is to maintain a premium Canadian portfolio of properties on behalf of their pension and accident fund clients, as highlighted in Wealth 365. However, this fund will primarily be available to institutional and other capable investors, and not for singular accredited investors and advisors.
Thus, while the merger offers opportunities for institutional investors with extensive capital to invest, at ReDev Properties Ltd. we offer retail CRE investments to all investors, especially those who seek security and success with their investment. The singular accredited investors and advisors is ReDev Properties Ltd. speciality. We cater specifically to helping the non-institutional and institutional investors strengthen and grow their portfolio and pension investments.
With the biggest CRE transaction, taking place in Canada CRE sector, now is truly a great time to invest in CRE in Canada.
The demand for a mix of CRE, especially retail real estate spaces in cities such as Alberta, Ontario and Saskatchewan are prime for all investors. These submarkets are all areas that ReDev generates investment opportunities in as they continue to offer solid real estate investments and reliable stream of income for investors.
ReDev wants to maintain environments that present and increase value for every investor it serves. Contact us today to learn more about our Canadian Retail CRE opportunities.