Canada Life Real Estate Fund
Established in 2005, the Canada Life Real Estate Fund invests in units of the Great-West Life Real Estate Fund.
as of December 31. 2022
in real estate assets
in total assets
Source of Return
Compound rates of return
(gross of investment management fees)
|Three Month – Q4||-0.15%|
Diversification by property type
By property type (millions)
Diversification by region
By region (millions)
Q4 2022 Canada Life Real Estate Fund Bulletin
The Canadian Real Estate Fund No.1 posted a 7.2% total gross return for the calendar year of 2022. The industrial and residential segments of the portfolio led performance as each benefited from favorable market dynamics leading to significant rental rate growth. The overall result was balanced between income and capital and inline with longer term three (7.1%) and five (7.5%) year total performance. Occupancy once again exceeded 90%, concluding the year at 91.3%. While the office sector continues to face headwinds as tenants consider their post pandemic ‘back to the office’ strategies, all other asset classes (residential (2.85%), industrial (2.03%) and retail (3.69%)) continued to perform admirably. Key updates from the quarter’s activities follow:
261 Abbotside, Caledon, ON
261 Abbotside, Caledon, ON
8350-8450 Lawson, Milton, ON
Bayview Village, Toronto, ON
261 Abbotside Way is a 138,000 square foot, 36 foot clear height industrial building that resides on a 7.9 acre parcel of land in Caledon, ON, with direct access to Highway 410 offering great connectivity to labour and surrounding GTA markets. The building has been designed with the ability to accommodate a wide variety of tenants with demising flexibility. The site was acquired in late 2020 with construction commencing in December 2021 and is now nearing completion, which is expected early in 2023. Further detail is available at the following link: https://261abbotsideway.com/
Ideally located in the heart of the Annex/Yorkville area of Toronto, 50 Prince Arthur is a best-in-class rental apartment building featuring large, updated suites and serviced by an extensive list of in-house amenities as well as being just a short walk from some of the city’s largest attractions. In Q3 management completed a new $65M CMHC insured financing initiative at the asset, moving the Fund’s LTV to 19.2%, which is up 150 bps since the beginning of 2022. The Fund employs a conservative, fixed rate, debt strategy with an average in place weighted average interest rate of 3.3%.
The Bank of Canada has begun to signal a conditional pause to the interest rate hike cycle which has seen the policy rate grow from 0.25% to 4.25% across seven consecutive hikes in 2022. Stabilization of the interest rate environment would be a welcome signal and help provide economic and investor confidence. The Fund is well positioned going into 2023 with just 9.4% of the commercial portfolio’s leases expiring. Combined with strong in-place occupancy, the limited rollover exposure in 2023 should continue to ensure steady income performance for all stakeholders.
The Segregated Funds described in this bulletin are offered through a variable insurance contract issued by The Canada Life Assurance Company.
Please note that unit values and investment returns will fluctuate, and past performance is not necessarily indicative of future performance.
For IVIC investors: A description of the key features of the segregated fund policy is contained in the information folder.
Latest annual report
Past Performance Reports
|Q4 2022 Bulletin||
|Q3 2022 Bulletin||
|Q2 2022 Bulletin||
|Q1 2022 Bulletin||
|Canadian Real Estate Investment Fund - Annual Report 2021||
|Canadian Real Estate Investment Fund - Annual Report 2020||
|Canadian Real Estate Investment Fund - Annual Report 2019||
|Canadian Real Estate Investment Fund - Annual Report 2018||
|Canadian Real Estate Investment Fund – Annual Report 2017||
Want to Invest?
Contact a Canada Life advisor to invest in the Canada Life Real Estate Fund.