Blackstone targets Canadian real estate, opens office in Toronto

Blackstone targets Canadian real estate, opens office in Toronto

Office towers and adjacent condominiums in downtown Toronto on November 9, 2020.Fred Lom/The Globe and Mail

Blackstone Inc. operates BX-N is ramping up its Canadian real estate business and opening an office in Toronto as it expands from large investments in warehouses into new sectors such as commercial and residential real estate.

Blackstone, one of the world’s largest asset managers, announced Monday that it has appointed former CEO of the Canada Pension Plan Investment Board Janice Lane as its head of real estate in Canada. For the past two years, Ms. Lin has been the Chief Investment Officer at Revera Inc.

“I look forward to strengthening Blackstone’s strong presence in Canada and supporting business across a number of different sectors,” Ms. Lynn said in a press release. “Canada’s population growth is the highest among the G7 countries and nearly twice that of the United States, and I think this will continue to create exciting opportunities in the market.”

Blackstone currently owns about 450 properties in Canada, valued at $14 billion. The bulk of its portfolio focuses on logistics, such as warehouses. In 2018, Blackstone teamed up with Ivanhoé Cambridge Inc. , a subsidiary of Caisse de dépôt et placement du Québec, to acquire Pure Industrial REIT for $3.8 billion, including debt. Last year, Pure acquired an additional 190 synthetic drugs as part of the Cominar REIT acquisition.

Recently, Blackstone has expanded its Canadian commercial and residential holdings. Fund assets He bought the director of the Bentall Center in Vancouver in 2019 for $1 billion. In 2021, it acquired three office buildings in downtown Toronto, a technology-focused building Known as the Atlantic Complex, for $240 million.

Last year, Blackstone and her partner also purchased a series of 12 homes for seniors in Quebec. In April, the asset manager purchased the Air Canada-Altoria Tower in Montreal, a building that houses offices and condominiums, for $230 million.

Nadim Maggi, head of American real estate at Blackstone in New York, said the fund manager is investing around key topics, which currently include owning industrial-related real estate. To e-commerce, rental housing, life sciences offices, and film studios benefiting from the production surge for streaming services.

“We believe in the long-term strength of the Canadian economy,” Mr. Megji, a Vancouver native, said in a press release.

Blackstone is one of the world’s largest real estate investors, with $298 billion in real estate and $880 billion in assets under management. A number of its main competitors are Canadian, including Brookfield Asset Management Inc.

Blackstone is swelling as its institutional investor clients increase the amount of capital they put into real estate. Survey of pension plans, insurance companies and An endowment published by Britain-based investment data service Preqin in April found that 26 percent of investors plan to allocate $300 million or more to real estate this year; Only 9 per cent committed that much capital one year ago.

Globally, fund managers invest about $4.1 trillion in the sector, according to industry surveys.

Part of the property’s attractiveness is its perceived value as a hedge against inflation. Commercial real estate services firm Avison Young recently released a study that said “the relationship between real estate and inflation is much more subtle than conventional wisdom suggests.”

Avison Young looked at the Canadian, US and UK markets and found that in the short term – less than five years – real estate markets do not offer much protection from rising inflation. However, once investment prospects move into five years or more, the sector outperforms. The study found that “real estate’s inflation-protection potential is best suited to long-term property owners who are prepared to face the vagaries of multi-year economic and real estate cycles.”

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2022-05-09 11:00:00

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