RBC Canadian Core Real Estate Fund raises $1.25 billion in first equity tranche, exceeding subscription targets
Unique real estate fund is the result of a $7.5 billion collaboration with BCI and QuadReal
RBC Global Asset Management Inc. (RBC GAM Inc.) today announced the first closing of the RBC Canadian Core Real Estate Fund (the Fund), which attracted more than $1.25 billion in equity commitments from institutional and individual investors, materially exceeding subscription targets.
RBC GAM Inc. announced the creation of the Fund in March 2019 together with British Columbia Investment Management Corporation (BCI) and QuadReal Property Group (QuadReal). This solution provides investors with access to one of Canada’s highest quality, largest and most diversified commercial real estate portfolios. In order to create long-term alignment with investors, BCI will maintain a 50% ownership position in each property held by the Fund, and QuadReal will continue to manage the properties, ensuring a seamless continuity of service and management and a disciplined focus on asset-level performance.
The vend-in of the Fund’s interest in the initial portfolio will take place over three additional subscription tranches, with the next scheduled to close in the second half of 2020. This series of tranches will form the base of the RBC Canadian Core Real Estate Fund and provide a defined, multi-year growth trajectory. Once these tranches are complete, the Fund will have an equal ownership position with BCI in a core real estate portfolio valued at over $7.5 billion. As the Fund is an open-ended real estate vehicle, its management team also intends to be actively engaged in seeking other core Canadian investment opportunities that are consistent with its mandate.
In response to strong market demand, the first tranche of the Fund has been allocated across a broad range of individual and institutional investors.
“The RBC Canadian Core Real Estate Fund has attracted exceptional client interest, demonstrating strong demand for a differentiated real estate solution backed by three Canadian industry leaders,” said Damon Williams, CEO of RBC GAM. “The fact that the Fund’s first tranche generated deep interest from a broad spectrum of investors is a testament to the quality of the assets and the strength of the relationship between RBC GAM, BCI and QuadReal.”
“The successful launch of the Fund establishes a strong foundation with RBC GAM for an innovative collaboration to deliver on the benefits of active asset management,” said Dennis Lopez, CEO of QuadReal. “Working with RBC GAM aligns with our strategy to establish key partnerships and invest in exceptional Canadian assets while diversifying the global real estate program that we manage on behalf of BCI and its clients.”
“QuadReal’s experience and creativity, with a strong local presence across Canada, drives portfolio performance, to deliver returns BCI’s clients expect,” said Remco Daal, President, Canadian Real Estate, QuadReal. “The team shares an unwavering commitment to sustainability and to seamless and attentive service to tenants and residents.”
This information is not intended to be an offer or solicitation to buy or sell securities. The Fund is 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 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 $450 billion in assets and have approximately 1,400 employees located across Canada, the United States, Europe and Asia.
With $153.4 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; mortgage; public and private equity; real estate; infrastructure; and renewable resource.
Headquartered in Vancouver, Canada, QuadReal Property Group is a global real estate investment, operating and development company. QuadReal manages the real estate and mortgage programs of British Columbia Investment Management Corporation (BCI), one of Canada’s largest asset managers with a $153.4 billion portfolio.
QuadReal manages a $37.6 billion portfolio spanning 23 Global Cities across 17 countries. The company seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.
QuadReal: Excellence lives here.
For more information, please contact:
RBC GAM Corporate Communications