CC&L launches HNW real estate unit

Connor, Clark & Lunn Financial Group has formed a new private equity real estate venture. Crestpoint Real Estate Investments Ltd. will offer institutional and high net worth investors with direct access to Canadian commercial real estate assets.

Investors have the choice of pooled or segregated accounts.

“For several years now, industry consultants have highlighted the trend towards increasing demand for alternative investments like private equity, infrastructure and real estate,” said Mike Freund, co-CEO of CC&L Financial Group.

Kevin Leon, Crestpoint’s president and chief investment officer, says the company will focus on growing cash-flow over the long term, which differentiates the firm from real estate investment trusts, which tend to focus on short-term cash flow.

“Our approach is to acquire high-quality, well-located office, retail and industrial properties with sustainable income and the potential for long-term capital appreciation,” Leon says. “By acquiring established properties below their replacement cost and enhancing value through strategic property management, we aim to generate annual returns in the range of 8-10%, more than half of which will come from income.”

Crestpoint has already purchased its first property, a class A industrial distribution facility located just minutes from the Calgary International Airport, named the Deerfoot Distribution Centre. The value of the transaction was approximately $12.7 million.

“The Deerfoot property is representative of the type and quality asset of asset that we will seek across the country as we build our real estate portfolio,” Leon says. “We are excited about the high level of momentum we’re seeing in terms of deal flow and interest from investors. We expect to complete our second property acquisition very soon.”

Staff

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