Fiera Real Estate CORE Fund
Overview
Investment Approach
The Fiera Real Estate CORE Fund is an open-ended Canadian real-estate investment fund. It offers stable long-term and risk-protected income through a pooled real estate investment strategy to institutional investors such as pension funds, foundations, endowments, family offices and high-net-worth investors. To date, the fund has achieved above-average core strategy returns and a growing investor base.
Management Style
This fund focuses on income, capital protection and appreciation. It is designed, first and foremost, to provide investors with a stable and steadily-growing income stream secured by multi-year, fixed-term tenant rental contracts across the fund’s real estate portfolio.
A portion of the investment allocation for this fund is dedicated to sourcing properties where value can be added through renovations, expansions, leasing, development or other forms of property enhancement to increase rental rates and underlying capital value. The objective is to create high-quality assets from a lower cost-base, to produce above-average yields that can be held in the fund for the long-term.
Key Principles
- Quarterly income distribution
- Underlying capital appreciation and low return volatility
- High-quality properties in urban centres across Canada
- Geographic and property diversification to mitigate risk and maximize investor returns
- Commitment to quarterly liquidity commitment
A growing fund base that offers liquidity to investors
Investment sourcing proficiency based on top-tier market intelligence
A management team with a vested interest
Institutional-standard evaluation, risk-mitigation and governance processes
A disciplined due-diligence process with a high level of scrutiny
No management-related conflicts of interest
A conservative leverage strategy
Portfolio
Portfolio Allocation
By location
- Ontario
- British Columbia
- Quebec
- Alberta
- Nova Scotia
- Manitoba
The Fund’s Sustainable Investing Strategy:
- Rooftop Solar Project – Expected to be completed in two phases, upon completion, the project is anticipated to be the largest rooftop solar project in Canada. It is anticipated to produce over 1,960,000 kWh annually and is projected to reduce greenhouse gas emissions by approximately 1,470 tonnes per year. The project exemplifies our commitment to decarbonizing our portfolio and tackling the big projects that will get us to Net Zero emissions.
- Decarbonizing buildings through LED lighting upgrades – The Fund has completed over 800,000 square feet of LED lighting retrofits in Alberta in 2023, with plans for an additional 900,000 square feet retrofitted in 2024.
- Replacing traditional heating, ventilation and air conditioning systems with low-carbon rooftop units (“RTUs”) – Heat pumps and low-carbon RTU are energy efficient alternatives for managing heating and cooling, which can be integrated seamlessly with the existing mechanical systems at the property, further simplifying the installation process, lowering the cost, eliminating the use of fossil fuel, and ultimately reducing the property’s greenhouse gas emissions. The Fund undertook several RTU projects across its portfolio.
Fiera Real Estate supports
the Sustainable Development Goals
In 2015, all UN Member States adopted the 2030 Agenda for Sustainable Development. Underlying ‘Agenda 30’ are 17 Sustainable Development Goals (SDGs), which address the urgent call to end extreme poverty, fight inequality and injustice and to protect our planet.
The targets we have set for ourselves in order to meet our ESG commitments have been aligned with a number of these SDGs, but we have placed particular focus on the below:
Net Zero Carbon Pathway
In 2023, FRE Canada published its Net Zero Carbon (“NZC”) pathway, which sets out the actions required for the Fiera Real Estate CORE Fund’s and Fiera Real Estate Industrial Fund’s targets of NZC in a cost-effective and responsible way by 2040. The ambitious pathway is reflective of the significant progress that FRE Canada has already made in this area to date.
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