Great-West Life Real Estate Fund

Established in 1981, the Great-West Life Real Estate Fund is one of Canada’s largest real estate segregated funds. The Great-West Life Real Estate Fund (also known as the Canadian Real Estate Investment Fund No. 1 (or CREIF)) invests in a portfolio of high-quality, income-producing properties diversified by type and location. The objective is to provide investors with strong income returns and the opportunity for long-term capital appreciation. 

 

Fund Performance

as of  December 31, 2022

$6.5B

in real estate assets

$7.0B

in total assets

128

properties

Source of Return

2013201420152016201720182019202020212022
Income 4.7%4.8%4.5%4.5%4.5%4.3%4.2%3.8%3.8%3.3%
Capital 6.1%2.6%0.1%0.9%1.8%2.7%4.9%(1.3)%7.8%3.9%
Total 10.8%7.4%4.7%5.4%6.3%7.1%9.2%2.5%11.6%7.2%

Compound rates of return

(gross of investment management fees)
Three Month - Q4 -0.15%
Year-to-date 7.24%
One Year 7.24%
Three Year 7.06%
Five Year 7.47%
Ten Year 7.19%

Diversification by property type

By property type (millions)

Retail 9.0% $ 576
Office 27.5% $ 1,765
Industrial 31.1% $ 2,001
Residential 27.0% $ 1,733
Other 5.4% $ 352

Diversification by region

By region (millions)

British Columbia 10.5% $ 678
Alberta 9.9% $ 637
Prairies 1.2% $ 76
Ontario 67.0% $ 4,306
Quebec 10.4% $ 667
Atlantic 0.8% $ 52
U.S. 0.2% $ 12

Quarterly Highlights

Q3 2022 Great-West Life Real Estate Fund Bulletin

The Canadian Real Estate Fund No.1 closed the third quarter of 2022 by delivering a year-to-date total return of 7.13% and a one-year annualized figure of 11%.  Income returns remained stable as occupancy in the portfolio improved on the strength of the multi-family sector which witnessed a 135 bps decline in vacancy quarter over quarter.  Key take aways from the period follow:

Vancouver Centre II, Vancouver, BC
Vancouver Centre II (Lobby), Vancouver, BC
50 Prince Arthur, Toronto, ON
50 Prince Arthur (Interieur), Toronto, ON
50 Prince Arthur (Interieur), Toronto, ON
2022 GRESB Results

GRESB is the global environmental, social and governance (ESG) benchmark for real assets. The 2022 real estate benchmark saw the largest ever growth in total numbers, with 1,820 entities now participating worldwide, covering USD 6.9 trillion of GAV across 74 countries.  In Q3, the Fund made its fifth GRESB submission, and was once again recognized as a top performer. The Fund earned a GRESB ‘5 Star’ (top quintile) rating and placed among the top 7th percentile of participants in the ‘Diversified/Non-listed/Core’ category. The 2022 results are a strong reflection of the Fund’s ongoing commitment to reducing greenhouse gas emissions and generally making positive environmental and social impacts in the communities in which we invest.   Progress towards a 2050 net zero target continues to be made.

 

Financing Activity

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%. 

Development Update

Vancouver Centre II is a generational asset for the Fund.  Well located within the central business district and directly connected to the Canada Line of Metro Vancouver’s SkyTrain rapid transit system, the building is now largely complete and has welcomed its first occupants.  Please visit the following website to learn more: https://www.vancouvercentre.com/

Forward Outlook

As a result of an evolving interest rate environment, appraised asset values have retreated modestly; however, strong fundamentals in both the industrial and multi-family asset classes have created tailwinds for rental rate growth, somewhat offsetting the impact of revised yield expectations.  The Fund has limited (11% of commercial space) rollover exposure in 2023 and has made significant capital commitments to ensure the portfolio continues to attract and retain tenants in order to drive strong outcomes for 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.

Downloads

Latest annual report

Latest bulletin

Past Performance Reports

Quarterly Bulletins

Q3 2022 Bulletin PDF (343 KB)
Q2 2022 Bulletin PDF (1 MB)
Q1 2022 Bulletin PDF (1 MB)
Q4 2021 Bulletin PDF (1 MB)

Annual Reports

Canadian Real Estate Investment Fund - Annual Report 2021 PDF (5 MB)
Canadian Real Estate Investment Fund - Annual Report 2020 PDF (3 MB)
Canadian Real Estate Investment Fund - Annual Report 2019 PDF (5 MB)
Canadian Real Estate Investment Fund - Annual Report 2018 PDF (4 MB)
Canadian Real Estate Investment Fund – Annual Report 2017 PDF (4 MB)

Want to Invest?

Contact a Great-West Life advisor to invest in the Great-West Life Real Estate Fund.