Fiera Real Estate Industrial Fund
Overview
Investment Approach
The Fiera Real Estate Industrial Fund is an open-ended strategy that produces outperforming income and stable total returns through direct investment in real property across Canada. This is an industrial real estate strategy focused on small- and medium-bay properties that are institutional grade with strong rental growth upside. The portfolio is diversified geographically within Canada in primary and secondary markets, with significant risk mitigation through large building count and large tenant count, and minimal leverage levels.
Track Record
The strategy deployed by the fund is exemplified through a 40+ year history of investing in and managing small- and medium-bay industrial properties. The Manager has deployed over $1.8 billion in equity across over 450 properties through twelve closed-ended funds, culminating in this open-ended strategy. The average net return of these funds is over 12%. The fund leverages this extensive experience with similar strategies alongside deep market knowledge and a strong network to source accretive opportunities to deliver outperformance.
Key Principles
- Protect investor capital
- Acquire at below replacement cost
- Apply proactive, creative management and leasing strategies
- Maintain liquidity through prudent capital and financing strategies
- Deliver stable income returns and maximize value on investments
A growing fund base that offers liquidity to investors
Investment sourcing proficiency
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
- Greater Toronto Area
- Greater Montreal Area
- Greater Calgary & Edmonton Areas
- Secondary Canadian Markets
- Greater Ottawa Area
- Greater Halifax Area
Sustainable Investing
The Fund’s sustainable investing strategy is structured to uphold accountability to its investors while driving tangible progress towards Fiera Real Estate’s decarbonization objectives. By aligning with recognized industry standards, the Fund ensures that its approach remains both current and performance driven. Capital is allocated strategically to manage the cost implications of sustainable investments for stakeholders, while opportunistically leveraging market conditions to deliver the highest value-for-money on energy-efficient retrofits and upgrades. Recognized as a leader and active contributor to global sustainability benchmarks, the Fund maintains a steadfast commitment to supporting the transition to a low-carbon, resilient built environmentand more sustainable future.
The Fund’s Sustainable Investing Strategy:
- 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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