New RBC real estate fund subscriptions exceed targets

By Steve Randall

A unique real estate fund has beaten the expectations for subscriptions on reaching a key milestone

The RBC Canadian Core Real Estate Fund provides investors with access to one of Canada's highest quality, largest and most diversified commercial real estate portfolios.

Its first closing was announced last week with more than $1.25 billion in equity commitments from institutional and individual investors, materially exceeding subscription targets.

RBC Global Asset Management created the fund with British Columbia Investment Management Corporation (BCI) and QuadReal Property Group (QuadReal).

"The RBC Canadian Core Real Estate Fund has attracted exceptional client interest, demonstrating strong demand for a differentiated real estate solution backed by three Canadian industry leaders," said Damon Williams, CEO of RBC GAM. "The fact that the Fund's first tranche generated deep interest from a broad spectrum of investors is a testament to the quality of the assets and the strength of the relationship between RBC GAM, BCI and QuadReal."

$7.5 billion portfolio
Investors still have three chances to invest in the fund; the next subscription round is scheduled to close in the second half of 2020.

When all four tranches have closed, the fund will have equal ownership with BCI of a commercial real estate portfolio valued at over $7.5 billion; and the management team plan to actively seek other investment opportunities that are consistent with its mandate.

"The successful launch of the Fund establishes a strong foundation with RBC GAM for an innovative collaboration to deliver on the benefits of active asset management," said Dennis Lopez, CEO of QuadReal. "Working with RBC GAM aligns with our strategy to establish key partnerships and invest in exceptional Canadian assets while diversifying the global real estate program that we manage on behalf of BCI and its clients."

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