Real Estate

Global Real Estate

At a Glance

We believe income drives real estate returns over the long run. Therefore, we acquire and build a diversified real estate portfolio that is designed to generate sustainable income and income growth, backed by active management and multi-dimensional risk management

Global Markets and Sectors Provide Further Diversification

  1. Real estate experience: Over 30 years of experience in managing real estate and building private asset portfolios for institutional clients

  2. Global diversified focus: The strategy typically invests in over 700 underlying individual properties in 120+ cities providing broad diversification

  3. Relationship-driven investing: We can leverage established relationships built from our extensive alternatives business, which includes real asset investments and relationships executing domestically and abroad

  1. Flexible investment approach: The strategy’s investment approach is flexible, with the ability to invest in unique and attractive investment opportunities including indirect (open and close ended funds) and direct (such as joint ventures, co-investments, club deals and majority ownership)

  2. Real assets risk analytics tool: A proprietary tool built in-house, the Real Assets Risk Analytics Tool gives us the ability to track all individual investments and portfolio-level characteristics while integrating economic fundamentals, market demographics and real estate fundamentals into the analysis

Philosophy and Approach

  • With over 30 years of experience managing Alternative Investments, our competitive advantage is a firmly established Canadian and global alternative assets platform. Our philosophy is to protect, grow and build the income stream of our clients’ portfolios.

    We follow an active income and income growth approach and believe both Canadian and global real estate can play strong roles as foundational real asset exposures for most clients. Allocations to real estate increase, global markets and sectors provide further diversification and can potentially improve risk-adjusted returns. An allocation towards a global real estate mandate can enhance the set of investable opportunities and better enable investors to access assets at attractive valuations.

    Our investment process consists of:

    Top-down analysis: From a top-down perspective, diversification and disciplined debt management are key risk controls – ultimately our goal is to achieve broad diversification by location, property type and risk strategy, and through conservative debt targets so that no single asset, country or tenant can significantly shock the portfolios.

  • Bottom-up analysis: The bottom-up analysis determines what locations, partners, tenants and buildings to consider. Portfolio construction involves quantitative research on major metro markets globally, including economic and population growth, education and income levels, new real estate supply projections, rental growth and valuations. Qualitative research is also performed and includes manager site visits, building inspections, property management and tenant interviews. The result of our quantitative and qualitative research is fed into our House View process where we provide formal ratings on our cities of focus and major property types.

    Model: All investment decisions are placed into a proprietary portfolio modelling system to provide clarity on availability of capital and visibility to any potential compliance issues. The model provides forecasted diversification and sensitivity analysis, allowing for a dynamic focus on investment decisions that optimize risk-adjusted returns and meet portfolio requirements.

    Execution: Our ability to source and evaluate real estate investments has primarily been the result of our large-scale Alternatives platform, key relationships developed and a demonstrated ability to execute with clarity, consistency and integrity.

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