RBC Global Asset Management has agreed to buy a 50 percent stake in a real estate portfolio of QuadReal Property Group, an investment arm of British Columbia Investment Management Corp. The portfolio, which consists of twelve core industrial and residential properties in Toronto, Vancouver and Edmonton, is valued at more than C$1 billion. The deal is expected to close in October.
TORONTO, September 8, 2021 – RBC Global Asset Management Inc. (“RBC GAM Inc.”) today announced that RBC Canadian Core Real Estate Fund (the “Fund”) has entered into an agreement to purchase a 50% interest in a portfolio of real estate assets valued in excess of $1 billion from its partner, British Columbia Investment Management Corporation (“BCI”) and BCI’s real estate arm, QuadReal Property Group (“QuadReal”). The Fund’s acquisition represents one of the largest Canadian real estate transactions this year, and increases the size of RBC GAM Inc. and BCI’s partnership to more than $9 billion.
The new assets comprise a portfolio of twelve core properties located in Toronto, Vancouver and Edmonton; 70% are industrial and 25% are multi-family residential by market value, adding approximately 5.5 million square feet of industrial space and 843 residential rental units to the portfolio. Leveraging the strength of RBC GAM Inc.’s relationship with BCI and QuadReal, the transaction was completed off-market. Consistent with the terms of the partnership, BCI will own the remaining interest in each individual asset and QuadReal will continue to operate and manage the properties providing important long-term performance alignment.
The transaction is expected to close on October 29, 2021, coinciding with the completion of the third tranche of the Fund’s multi-year acquisition program with BCI. The Fund was launched in 2019, and has grown steadily amidst one of the most challenging periods for commercial real estate on record.
“The acquisition of these new assets is another significant milestone for the RBC Canadian Core Real Estate Fund, and demonstrates the value and alignment of our partnership with BCI and QuadReal,” said Michael Kitt, Head, Private Markets and Real Estate Equity Investments, RBC Global Asset Management Inc. “We believe that an allocation to real assets remains a fundamental component of a well-diversified investment portfolio, and our Fund was created to meet this need by providing Canadian investors and advisors with access to an exceptional portfolio of commercial real estate assets, backed by three industry leaders.”
The Fund is designed to provide investors with an attractive income stream and total returns with limited volatility by investing in a well-diversified portfolio of premium core, income-producing Canadian real estate assets. The addition of the new assets announced today is consistent with the Fund’s target asset allocation, which is designed to provide balanced exposure to the four major sectors of the Canadian commercial real estate market, offering access to an important asset class that historically has been difficult to access for all but the largest institutional investors.
This information is not intended to be an offer or solicitation to buy or sell securities. The Fund is offered by RBC GAM Inc. RBC GAM Inc. is a member of the RBC Global Asset Management 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 $580 billion in assets and have approximately 1,500 employees located across Canada, the United States, Europe and Asia.