Canada Life Real Estate Fund

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.