Private Investments

AIMCo’s private investment groups manage investments that do not normally trade on exchanges, such as real estate, infrastructure, private equity and timberlands. The teams that manage these asset classes have significant decision-making autonomy allowing for a more timely response to investment opportunities.

Real Estate

Real Estate provides exposure to domestic and international real estate through direct holdings diversified across property types and geography. 

The group also invests in opportunity funds and other real estate-related securities. The portfolio consists primarily of direct investments with joint venture partners in high-quality office, retail, industrial and multi-unit residential properties in Canada’s major centers. High-quality core assets with stable returns make up 85% of the total portfolio with the remaining 15% in opportunistic and development positions. 

We also participate in niche market sectors through six externally managed Canadian opportunity funds plus three externally managed funds providing foreign diversification in Mexico, Europe and the U.S. Our current priority is to maintain income levels by retaining tenants on lease rollover. The high quality of our holdings provides some protection against the recessionary impact on rent levels. Dislocation in U.S. and European property markets may provide attractive foreign investment opportunities.

Infrastructure

Infrastructure acquires and manages long-term equity positions in OECD-based infrastructure assets. These assets typically provide essential services to the public, have an operating history and are either regulated or have highly contracted revenues with the potential for long-term capital appreciation. 

Infrastructure investments include utilities, energy/power (generation, transmission and distribution networks, pipelines) and transportation (toll roads, airports, seaports). The group primarily makes direct investments in infrastructure but will also selectively consider externally managed funds.

Timberlands

Timberlands acquires and manages equity interests in timberland, timber leases, timber harvesting rights and related assets that generate revenue primarily from the sale of logs. Timberlands has a global mandate and actively invests both in externally managed funds and directly in assets alongside funds or within equity consortia. 

Timber is a long-term and inflation-sensitive asset. Wood is a very versatile material with a wide range of applications that, over time, have contributed to generating returns that keep pace with inflation. Since our financial leverage levels are low, we have the flexibility to defer harvest until markets for timber improve. Waiting is not an issue since the trees will continue to grow in size and our investments will continue to grow in value.

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