Fiera Real Estate announces the opening of the Fiera Canadian Real Estate Debt Fund L.P. to external investors, reinforcing its growth strategy Français
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
MONTREAL, Oct. 1, 2024 /CNW/ - Fiera Real Estate Investments Limited ("Fiera Real Estate") is pleased to announce the opening of the Fiera Canadian Real Estate Debt Fund L.P. (the "Fund") to qualified external investors, marking a key step toward the expansion of its real estate financing strategy created in 2006 (the "Strategy"). This initiative aims to significantly increase investment opportunities by raising additional capital from private and institutional investors, with a goal of reaching CAD 1.5 billion in capitalization over the next few years.
The Fund is structured as a limited partnership and operates as an open-ended fund that aims to provide stable and attractive returns. It achieves this through short-term investments with real estate developers and landowners to support their construction projects or the redevelopment of their real estate assets in Canada. The Strategy aims to preserve unitholders' equity while generating competitive returns, providing investors with liquidity and a stable stream of distributions from these investments.
"Over the past 18 years, the Strategy has demonstrated its ability to generate solid and consistent returns. Opening this Fund to qualified external investors is an exceptional opportunity for those seeking a reliable investment in the Canadian real estate sector. We remain true to our investment philosophy of risk management and capital preservation, and I am confident that the Fund will continue to offer highly competitive returns," said Pierre Pelletier, Senior Managing Director and Head of Development and Debt.
Since its inception, the Strategy has delivered superior risk-adjusted returns to its investors, with an average net annual return of 7.91% and assets under management of nearly C$800 million as at June 30, 2024. With a total of over C$5.5 billion in real estate loans distributed across Canada since 2006, the Fund aims to extend its reach to qualified external investors with its robust and proven real estate financing strategy now available for direct investment.
Martin Saulnier, Head of Real Estate Debt, commented: "The enthusiasm for development opportunities is gradually returning to the market. This can be attributed to recent interest rate cuts, the stabilization of construction costs, an apparent lack of residential units at the national level, and a sustained demand for industrial space. We envision a future where the Fund will continue to play a central role in financing innovative real estate projects across Canada, while seeking to offer investors opportunities for attractive risk-adjusted returns. Increasingly, borrowers in the Canadian commercial mortgage market are turning to non-bank lenders to meet their financing needs. The Fund is well positioned to benefit from this trend in the real estate lending market as it seeks to offer its investors stable risk-adjusted net returns with low correlation to stock market fluctuations."
The Fund offers real estate developers and landowners a diversified range of financing products tailored to their specific needs, including first- and second-lien financing, between C$5 and C$50 million, with loan terms between 12 and 24 months. These loans are secured by high-quality real estate assets located in major Canadian markets. In addition, the portfolio is strategically diversified and comprised of quality real estate development projects in Canada's urban centers. Diversification by region and solution type helps mitigate risk and maximize investor returns.
For more information on Fiera Canadian Real Estate Debt Fund L.P. and other Fiera Real Estate strategies, please visit https://ca.fierarealestate.com/strategies/debt-funds/
About Fiera Real Estate
Fiera Real Estate Investments Limited ("Fiera Real Estate") is a leading investment management company with offices in North America and Europe, and a team of over 90 employees. The firm manages over C$10.2 billion of commercial real estate globally through a range of funds and accounts as at June 30, 2024. The highly diverse nature of its portfolio – geographies and asset types – combined with a range of high-quality strategies provides investors with opportunities to diversify their exposure and customize their investment experience within the real estate asset class. Fiera Real Estate is wholly owned by Fiera Capital Corporation, a leading independent asset management firm with more than C$158.9 billion in assets under management as at June 30, 2024. ca.fierarealestate.com
About Fiera Capital Corporation
Fiera Capital Corporation ("Fiera Capital") is a leading independent asset management firm with a growing global presence. Fiera Capital delivers customized and multi-asset solutions across public and private market asset classes to institutional, financial intermediary, and private wealth clients across North America, Europe, and key markets in Asia. Fiera Capital's depth of expertise, diversified investment platform, and commitment to delivering outstanding service are core to our mission of being at the forefront of investment management science to create sustainable wealth for clients. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange.
Headquartered in Montreal, Fiera Capital, with its affiliates in various jurisdictions, has offices in over a dozen cities around the world, including New York (U.S.), London (UK), and Hong Kong (SAR).
Each affiliated entity (each an "Affiliate") of Fiera Capital only provides investment advisory or investment management services or offers investment funds in the jurisdictions where the Affiliate is authorized to provide services pursuant to an exemption from registration and/or the relevant product is registered.
Fiera Capital does not provide investment advice to U.S. clients or offer investment advisory services in the U.S. In the U.S., asset management services are provided by Fiera Capital's affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission ("SEC") or exempt from registration. Registration with the SEC does not imply a certain level of skill or training. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult https://www.fieracapital.com/en/registrations-and-exemptions.
Additional information about Fiera Capital, including the Fiera Capital's annual information form, is available on SEDAR+ at www.sedarplus.ca.
Disclosure
Past performance is not a guarantee of future results. Inherent in any investment is the potential for loss.
The information presented is for informational purposes only and is not intended to be, and should not be construed as, an offer to sell, or the solicitation of an offer to buy, any investment product. The information presented in this document, in whole or in part, is not investment, tax, legal or other advice, nor does it consider the investment objectives or financial circumstances of any investor.
This document may contain "forward-looking statements" which reflect the current expectations of Fiera Capital and/or its Affiliates. These statements reflect current beliefs, expectations, and assumptions with respect to future events and are based on information currently available. Although based upon what Fiera Capital and its affiliates believe to be reasonable assumptions, there is no guarantee that actual results, performance, or achievements will be consistent with these forward-looking statements. There is no obligation for Fiera Capital and/or its Affiliates to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Fiera Capital Corporation
Press relations, Camille Rivard, Senior Advisor, Marketing and Client Communications, Fiera Real Estate, [email protected]
Share this article