Fiera Canadian Real Estate Debt Fund now available to external investors

Fiera Real Estate Investments Limited (“Fiera Real Estate”) is pleased to announce the opening of the Fiera Canadian Real Estate Debt Fund L.P. (the “Fund”) to qualified external investors, marking a key step toward the expansion of its real estate financing strategy created in 2006 (the “Strategy”). This initiative aims to significantly increase investment opportunities by raising additional capital from private and institutional investors, with a goal of reaching CAD 1.5 billion in capitalization over the next few years.

The Fund is structured as a limited partnership and operates as an open-ended fund that aims to provide stable and attractive returns. It achieves this through short-term investments with real estate developers and landowners to support their construction projects or the redevelopment of their real estate assets in Canada. The Strategy aims to preserve unitholders’ equity while generating competitive returns, providing investors with liquidity and a stable stream of distributions from these investments.

“Over the past 18 years, the Strategy has demonstrated its ability to generate solid and consistent returns. Opening this Fund to qualified external investors is an exceptional opportunity for those seeking a reliable investment in the Canadian real estate sector. We remain true to our investment philosophy of risk management and capital preservation, and I am confident that the Fund will continue to offer highly competitive returns,” said Pierre Pelletier, Senior Managing Director and Head of Development and Debt.

Since its inception, the Strategy has delivered superior risk-adjusted returns to its investors, with an average net annual return of 7.91% and assets under management of nearly C$800 million as at June 30, 2024. With a total of over C$5.5 billion in real estate loans distributed across Canada since 2006, the Fund aims to extend its reach to qualified external investors with its robust and proven real estate financing strategy now available for direct investment.

Martin Saulnier, Head of Real Estate Debt, commented: “The enthusiasm for development opportunities is gradually returning to the market. This can be attributed to recent interest rate cuts, the stabilization of construction costs, an apparent lack of residential units at the national level, and a sustained demand for industrial space. We envision a future where the Fund will continue to play a central role in financing innovative real estate projects across Canada, while seeking to offer investors opportunities for attractive risk-adjusted returns. Increasingly, borrowers in the Canadian commercial mortgage market are turning to non-bank lenders to meet their financing needs.  The Fund is well positioned to benefit from this trend in the real estate lending market as it seeks to offer its investors stable risk-adjusted net returns with low correlation to stock market fluctuations.”

The Fund offers real estate developers and landowners a diversified range of financing products tailored to their specific needs, including first- and second-lien financing, between C$5 and C$50 million, with loan terms between 12 and 24 months. These loans are secured by high-quality real estate assets located in major Canadian markets. In addition, the portfolio is strategically diversified and comprised of quality real estate development projects in Canada’s urban centers. Diversification by region and solution type helps mitigate risk and maximize investor returns.