Morguard's Stephen Taylor on why plan sponsors should consider real estate in Canada.
The 2008 economic crisis re-shaped the global financial landscape. Investors who were negatively impacted as a result of having assets tied up in illiquid investments are understandably concerned about a repeat scenario.
Michael Rizzello, senior portfolio manager with Canada Post, says that when it comes to real estate, there are three characteristics to consider before investing: cash flow, location and quality of asset.
Ivanhoé Cambridge, the real estate investment arm of the Caisse de dépôt et placement du Québec, has acquired 73.2% (with an option to acquire the remaining portion) of Shopping Golden Square, a shopping centre under development in the area of São Paulo, Brazil.
The Canada Pension Plan Investment Board (CPPIB) has made an equity commitment of US$355 million to develop and acquire several U.S. apartment complexes.
Marks the growing importance of asset class to pensions.
The Standard Life Real Estate Fund, managed by Standard Life Investments, has topped $1 billion in assets under management following the recent acquisition of the 8 West skyscraper in Calgary.
Towers Watson recently released its annual Global Alternatives Survey in conjunction with the Financial Times of London, England. The survey, in its ninth year, gathered information on alternatives products offered to investors, including pension funds, sovereign wealth funds (SWFs) and insurance companies, as at the end of 2011.
With equity market volatility persisting and bond yields at depressingly (and historically) low levels, Canadian pension funds have been seeking sources of stable return. One of the asset categories they have been turning to is direct real estate.
More emphasis to go on private placements in infrastructure and real estate