RBC Canadian Core Real Estate Fund Adds Twelve New Assets to its Portfolio
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, located in Vancouver, Toronto and Edmonton, add 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. 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.