The Great-West Life Real Estate Fund, London Life Real Estate Fund, OPTrust, and I.G. Investment Management Invest in Class A Office Complex in Toronto’s Financial District
February 28, 2019
Complex includes OPTrust’s corporate headquarters
TORONTO, ON, February 28, 2019 – The Great-West Life Real Estate Fund (CREIF), London Life Real Estate Fund (LLREF), OPTrust, and I.G. Investment Management, Ltd., as trustee for Investors Real Property Fund, have partnered to purchase a complex of three buildings in Toronto’s financial district. GWL Realty Advisors (GWLRA), Fund Manager for CREIF and LLREF, facilitated the partnership for this transaction.
“In today’s competitive market where there are limited opportunities to acquire Class A office buildings in core markets, we are pleased to have completed this transaction,” said Ralf Dost, President, GWLRA. “This acquisition adds another high-quality asset to our clients’ real estate investment portfolio and fits within our downtown strategy.”
The property is anchored by the Dynamic Funds Tower, the current corporate headquarters of OPTrust.
“As a pension management organization, it is critical that we find income-generating assets that align with our members’ requirements of providing Plan sustainability and security,” said Rob Douglas, Managing Director of Real Estate Investments, OPTrust. “With strong demand and historic low vacancy rates for Toronto office space, and the shared interest of trusted strategic partners, this property presented a unique and valuable opportunity to invest in a high-profile property in the heart of Toronto’s downtown core.”
Located at the southeast corner of Yonge and Adelaide, the property includes 1 Adelaide St. East (Dynamic Funds Tower), a 30-storey LEED® Gold certified office tower, 20 Victoria St., a nine-storey boutique office building, and 85 Yonge St., a three-storey retail building.
The Dynamic Funds Tower is currently 99 per cent leased, with tenants including Scotia Capital Inc. and OPTrust.
The property was previously co-owned by Oxford Properties Group and Canada Pension Plan Investment Board (CPPIB).
GWLRA will provide property management service for the complex.
About Investors Real Property Fund
The Investors Real Property Fund (“IRPF”) is one of the most unique mutual funds available in Canada due to its direct ownership of commercial real estate. IRPF is available for purchase only through IG Wealth Management. I.G. Investment Management, Ltd. is a professional money management subsidiary of IG Wealth Management, and as portfolio manager, provides investment, asset and property management services for IRPF. The IRPF team is comprised of investment professionals responsible for managing approximately $5 billion in assets.
With net assets of over $20 billion, OPTrust invests and manages one of Canada’s largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with over 92,000 members and retirees. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU and five by the Government of Ontario.
About the 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. As of December 31, 2018, the real estate assets of the Fund were $5.3 billion and its total assets were $5.8 billion. The Fund, which provides investors with a stable income return and the potential for capital appreciation, is invested in 123 properties, diversified by type and region.
About the London Life Real Estate Fund:
The London Life Real Estate Fund was launched in 1998 to create a vehicle for direct real estate investment. As of December 31, 2018, the real estate assets of the Fund were $3.1 billion and its total assets were $2.8 billion. The Fund, which provides investors with a stable income return and a potential for capital appreciation, is invested in 91 Canadian properties, diversified by type and region.
About GWL Realty Advisors (GWLRA)
GWL Realty Advisors is a leading North American real estate investment advisor providing comprehensive asset management, property management, development and specialized real estate advisory services to pension funds and institutional clients. GWL Realty Advisors manages a diverse portfolio of office, industrial, retail and multi-residential assets as well as an active pipeline of new development projects. In the United States, the Company provides real estate advisory services through its wholly owned subsidiary, EverWest Real Estate Investors, headquartered in Denver, Colorado.
Manager, Public Affairs
Senior Vice President
Corporate Services & Building Excellence
GWL Realty Advisors
GWL Realty Advisors Inc. is a leading North American real estate investment advisor providing comprehensive asset management, property management, development and specialized real estate advisory services to pension funds and institutional clients. GWL Realty Advisors Inc. manages a diverse portfolio of office, industrial, retail and multi-residential assets as well as an active pipeline of new development projects.