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.