BC pension fund breaks into real estate competition with $18-billion property group creation
by Penelope Graham
A British Columbia pension fund is breaking into the province’s red hot real estate competition with the creation of a private company based on its real estate assets.
British Columbia Investment Management Corp. has announced it will funnel its $18 billion in real estate holdings into QuadReal Property Group, with the goal of expanding the investment firm on a global scale. The company will have an independent board and has brought Remco Daal, formerly of Bentall Kennedy, which currently manages bcIMC’s Canadian real estate assets, on board as co-president. The management of these real estate assets will begin to transfer to QuadReal in 2017.
In addition to managing existing assets, QuadReal has a goal to expand into the U.S., Asia and European markets in efforts to strengthen returns for pension, public trust and insurance fund clients.
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“The establishment of QuadReal is a natural evolution for a company of scale and ambition and it fits perfectly with our strategy to expand our global reach," said Gordon J. Fyfe, chief executive officer and chief investment officer at bcIMC. "Real estate is an important part of our $123-billion investment portfolio. In addition to growing our real estate holdings, QuadReal is expected to maintain exceptional service for our tenants and residents, maximize returns for bcIMC's clients and demonstrate industry-leading environmental, social and governance stewardship."
The pension company’s portfolio will include more than 500 office, industrial, retail and residential properties domestically, with more than $2 billion in real estate investments internationally.
"At QuadReal, we are growing from a position of stability and strength, given the market position of our property management partners, and we will remain a reliable steward of capital and assets," said Daal. "At the same time, we are creating a company that has a global perspective and is entrepreneurial and ambitious. As such, we are offering exceptional opportunities for employees, including the opportunity to help build and manage one of the largest property portfolios in Canada."
