TORONTO, Sept. 8, 2021 /CNW/ - 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 comprise a portfolio of 12 core properties
located in Toronto, Vancouver and Edmonton; 70% are industrial and 25% are
multi-family residential by market value, adding 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. Consistent with the terms of the partnership, 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.
"The acquisition of these new assets is another significant
milestone for the RBC Canadian Core Real Estate Fund, and
demonstrates the value and alignment of our partnership with BCI
and QuadReal," said Michael Kitt,
Head, Private Markets and Real Estate Equity Investments, RBC
Global Asset Management Inc. "We believe that an allocation to real
assets remains a fundamental component of a well-diversified
investment portfolio, and our Fund was created to meet this need by
providing Canadian investors and advisors with access to an
exceptional portfolio of commercial real estate assets, backed by
three industry leaders.
The Fund is designed to provide investors with an attractive
income stream and total returns with limited volatility by
investing in a well-diversified portfolio of premium core,
income-producing Canadian real estate assets. The addition of the
new assets announced today is consistent with the Fund's target
asset allocation, which is designed to provide balanced exposure to
the four major sectors of the Canadian commercial real estate
market, offering access to an important asset class that
historically has been difficult to access for all but the largest
institutional investors.
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.
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 88,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank, and one of the largest in the world based on market
capitalization, we have a diversified business model with a focus
on innovation and providing exceptional experiences to our 17
million clients in Canada, the
U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
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.
SOURCE RBC Global Asset Management Inc.