November 2, 2021
RBC Global Asset Management Inc. (“RBC GAM Inc.”) announced that RBC Canadian Core Real Estate Fund (the “Fund”) successfully completed the third phase of its multi-year investment program on October 29, 2021, comprising an acquisition of over $700 million in real estate assets. Additionally, the Fund earned a ranking of first in Canada in the “Diversified” category for non-listed, standing investments, and was named as an “Overall Regional Sector Leader” in the Americas in its inaugural Global Real Estate Sustainability Benchmark (“GRESB”) assessment.
THIRD CLOSING OF THE FUND
The third closing of the Fund exceeded its target by raising over $450 million in equity subscriptions, continuing its phased investment strategy with British Columbia Investment Management Corporation (“BCI”) and QuadReal Property Group (“QuadReal”). The Fund, created based on an aligned partnership with BCI and QuadReal, provides investors with access to one of Canada’s largest, highest quality and most diversified commercial real estate portfolios, with assets located in key cities across the country. After the closing on October 29, 2021, the Fund has $2.7 billion in assets under management, and an ownership share in 62 assets valued at over $3.4 billion (at share), with BCI owning the remaining interest in the $9+ billion portfolio. QuadReal will continue to operate and manage the properties.
2021 GRESB REAL ESTATE ASSESSMENT
In its inaugural assessment by GRESB, the Fund was recognized as an “Overall Regional Sector Leader” in the Americas due to its strong performance relative its peer group1. The GRESB Sector Leader Awards recognize real estate funds and assets that have demonstrated outstanding leadership in sustainability each year. In addition, the Fund was ranked first in Canada and fourth globally in the “Diversified” category for non-listed, standing investments, and was awarded a five-star rating2 overall, demonstrating its commitment to sustainability excellence.
GRESB is an organization that provides standardized and validated Environmental, Social and Governance (ESG) data to financial markets. The GRESB assessments are guided by what investors and the industry consider to be material issues in the sustainability performance of asset investments, and are aligned with international reporting frameworks, goals and emerging regulations. The GRESB ESG Benchmark grew this year to cover more than $6.4 trillion of assets under management globally. For more information on the GRESB Assessment and Benchmark, visit https://gresb.com/nl-en/gresb-assessments/.
1 GRESB Sector Leaders are the best performers by sector, region, and nature of ownership from across the GRESB Assessments. The entity with the top GRESB score, as well as the entities with a score within 1 point of the top score, in a category are recognized as Sector Leaders. The RBC Canadian Core Real Estate Fund’s region is ‘Americas’, sector is “diversified’, and nature of ownership (legal status) is ‘non-listed.’ The Fund was 1st in Canada (out of 13), 2nd in the Americas (out of 86) and 4th globally (out of 246). https://gresb.com/nl-en/2021-real-estate-assessment-results/
2 The GRESB Rating is based on the GRESB Score and the quintile position an entity occupies relative to all entities participating in the GRESB Assessment globally. If an entity is placed in the top quintile, it is rated GRESB 5 Star. Each year, only 20% of entities receive this rating. GRESB 5 Stars is the highest rating and recognition for being an industry leader.
“Since launching RBC Canadian Core Real Estate Fund in 2019, we have experienced exceptional interest from clients, speaking to the quality of the portfolio as well as the alignment embedded in our partnership with BCI and QuadReal,” said Michael Kitt, Head, Private Markets and Real Estate Equity Investments at RBC Global Asset Management Inc. “Across RBC Global Asset Management’s investment platform, we believe that integrating environmental, social and governance considerations can enhance the long-term, risk-adjusted returns of the portfolios we manage for clients. The Fund’s strong GRESB ratings demonstrates our commitment to clients, and extends our focus on sustainability into private market assets.”
Remco Daal, President, Canadian Real Estate at QuadReal adds, “Incorporating progressive ESG management into all planning and decision making is a fundamental commitment we make to our clients, including BCI and RBC GAM Inc., and to the communities in which we are a part. We share the collective goal of achieving sustainable results. Validating our progress is a way in which we demonstrate this to ourselves and our stakeholders.”
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.
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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.
About QuadReal Property Group
QuadReal Property Group is a global real estate investment, operating and development company headquartered in Vancouver, British Columbia. Its assets under management total $61.2 billion. From its foundation in Canada as a full-service real estate operating company, QuadReal has expanded its capabilities to invest in equity and debt in both the public and private markets. QuadReal invests directly, via programmatic partnerships and through operating companies in which it holds an ownership interest.
QuadReal 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:
Brandon Dorey, RBC GAM Corporate Communications, 416-955-7397