RBC announces 12-property portfolio acquisition

This is one of the largest Canadian real estate transactions so far this year, bank says

RBC announces 12-property portfolio acquisition

RBC Canadian Core Real Estate has announced that it has entered into an agreement to add 12 Toronto, Vancouver, and Edmonton properties to its portfolio.

The transaction will see RBC purchase a 50% interest in properties with a collective value of more than $1 billion from RBC partner British Columbia Investment Management Corporation and BCI’s real estate arm, QuadReal Property Group.

RBC said that this acquisition, which is one the largest Canadian real estate deals so far this year, will increase the size of RBC GAM Inc. and BCI’s partnership to more than $9 billion.

Of the assets to be acquired, 70% are industrial and 25% are multi-family residential by market value. The transaction will add roughly 5.5 million square feet of industrial space and 843 residential rental units to RBC’s portfolio.

“Leveraging the strength of RBC GAM Inc.'s relationship with BCI and QuadReal, the transaction was completed off-market,” RBC said. “Consistent with the terms of the partnership, BCI will own the remaining interest in each individual asset and QuadReal will continue to operate and manage the properties providing important long-term performance alignment.”

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“The acquisition of these new assets is another significant milestone for the RBC Canadian Core Real Estate Fund, and demonstrates the value and alignment of our partnership with BCI and QuadReal,” said Michael Kitt, head of private markets and real estate equity investments at RBC Global Asset Management Inc. “We believe that an allocation to real assets remains a fundamental component of a well-diversified investment portfolio, and our fund was created to meet this need by providing Canadian investors and advisors with access to an exceptional portfolio of commercial real estate assets, backed by three industry leaders.”

The transaction is expected to close on Oct. 29.