Fiera Properties is launching the largest open-ended Canadian property fund in more than 20 years. The purpose of the vehicle is to provide pension funds, foundations, endowments and private investors with an open investment fund design.
The long-term diversified fund represents $352 million in equity capital from investors, says Stuart Lazier, CEO of Fiera Properties.
“We have completed the acquisition of a $160-million portfolio of assets in the fund comprised of prime retail and industrial properties across Canada,” Lazier adds. “The fund will further diversify its portfolio over the next 12 to 18 months with the planned acquisition of an additional $325 million in core income properties.”
Fiera Properties’ real estate portfolio management team will be in charge of the fund. To diversify the portfolio, the fund will target office, industrial, retail and apartment core assets.
“Investors in the fund will benefit from a core investment strategy that will provide stable and growing income streams, combined with careful attention to capital protection, inflation protection and low volatility in overall return performance,” according to Fiera Properties. With its quarterly openings, the vehicle would allow investors to rebalance their exposure periodically, the firm says.
“Our goal is to create a new multi-fund real estate fund manager that will provide our investors with solid returns, strong governance and contemporary fund designs,” explains Lazier.
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