Standard Life Investments launches Canadian Real Estate Fund for global investors

18 September 2013

Standard Life Investments, one of the largest global asset manager and one of the world’s largest real estate investors, has announced the first closing of a new Canadian Real Estate Fund (CREF), raising CDN $77m in initial equity.

The CREF is structured as a semi open-ended Canadian Limited Partnership with an English Limited Partnership feeder fund for non-Canadian investors. The Fund was intentionally designed for both domestic and international institutional investors to access the Canadian real estate market. Canada has historically been difficult for overseas investors to access, and Standard Life Investments is one of the few global real estate managers who can demonstrate a long established and successful capability in this market.

Standard Life Investments real estate team in Toronto has been providing domestic investors with access to the Canadian real estate market for over 30 years. The existing core, fully open-ended, fund has delivered strong long term performance of 9.4% per annum since launch on 31st December 1982, and has grown to over $1.3bn.

The new fund will focus on a core-plus strategy with managed liquidity and leverage, and will allow access for non-Canadian investors to a market which Standard Life Investments believes offers strong long term investment potential. The fund will also expand the existing Canadian real estate product suite with a complementary strategy.

David Paine, Head of Real Estate Investments at Standard Life Investments commented;

David Paine

“Raising $77m in the current climate is testimony to our team in Canada, their positive longstanding track record and the shared belief from our clients in the long term potential that the Canadian real estate market offers.

“The launch of the new fund is consistent with our desire to offer our global client base access to real estate markets where we can demonstrably add value. The Canadian market is one we know well with our existing fund having grown over the last three years by 142% to its current $1.3 billion.

“I am delighted with the announcement of the first close diversifying our real estate product suite.”

Blair McCreadie Head of Canadian Real Estate commented:

Blair McCreadie

“The successful launch of the CREF is consistent with Standard Life Investments strategy of building a best in class international product suite. Canada, as a G8 economy offers attractive long term investment fundamentals including its wealth in natural resources, historically stable banking and financial sector and an attractive demographic profile. The market is increasingly perceived as an attractive diversifier for institutional Investors.”

Standard Life Investments (Real Estate) Inc in Canada manages an existing pooled real estate fund for domestic institutional clients. The Standard Life Real Estate Fund has produced, for the 30-year period since inception, an annualized return of 9.4%. This fund, which has remained open throughout its history and has had a positive return in 29 of the past 30 years, is currently over CDN$1.3 billion in size.