RBC Canadian Core Real Estate Fund completes $860 million asset purchase, $175 million asset disposition and a $250 million green bond offering

TORONTO, Nov. 7, 2024 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") announced that RBC Canadian Core Real Estate Fund (the "Fund") completed its fifth portfolio transaction since its inception in October 2019 with British Columbia Investment Management Corporation ("BCI") and its wholly owned subsidiary QuadReal Property Group ("QuadReal"). The transaction comprised two parts: the acquisition of a partial interest in 40 assets totalling approximately $860 million, and the sale of the Fund's interest in five assets for proceeds totalling approximately $175 million. The completion of the transaction will see the Fund's gross asset value increase to well over $5 billion.

Funding the transaction
The transaction was capitalized by the issuance of the Fund's second unsecured debenture, a $250 million green bond offering, rated A (low) by DBRS, and through the raise of over $500 million in subscription proceeds, increasing the Fund's net asset value to over $4 billion. Since its inception five years ago, the Fund has steadily grown to become one of the largest core real estate funds in Canada. The Fund, which was created based on an aligned partnership with BCI and QuadReal, provides qualified Canadian individual and institutional investors with access to a high quality and diversified portfolio of real estate assets located in major cities across Canada.

"The rise in interest rates and economic uncertainty over the last two years has presented challenges to the Canadian real estate market, but has also created numerous opportunities for investors who are well capitalized," said Jennifer Schillaci, managing director and head, Real Estate Equity and Mortgage Investments, RBC Global Asset Management Inc. "Against the challenging backdrop created by high interest rates, the Fund was able to exceed its subscription targets, complete its second green bond offering, and close one of the largest real estate transactions in the country in 2024. Our ability to execute under these market conditions demonstrates the strength of our aligned partnership structure, the resiliency of our assets and the confidence our clients have in our ability to deliver results. We are also positioned very well for future growth as we head into 2025."

The Fund continues to consider environmental, social and governance (ESG) factors
Since its inception, although the Fund does not have a specific ESG-related investment objective or strategy, it nevertheless considers ESG factors when investing. The proceeds from the Fund's second green bond offering will be used to acquire additional eligible green projects for the portfolio.

GRESB, an organization that provides ESG data to financial markets, has ranked the Fund third in Canada in the Non-Listed Core Diversified Category,¹ and the Fund has earned its fourth consecutive five-star rating in its 2024 GRESB² assessment results.

"Launched as the foundational building block of our private markets investment capabilities, we have experienced tremendous growth within RBC Canadian Core Real Estate Fund over the past five years," said Michael Kitt, managing director and head, Private Markets, RBC Global Asset Management Inc. "Owing to the Fund's diverse and high-quality portfolio of assets and our unique partnership with BCI and QuadReal, we are executing on our disciplined strategy to provide Canadian institutional and individual investors with one of the most uniquely aligned real estate funds that supports their other portfolio investments."

"This is a highly complementary venture that continues to deliver value to clients," said Remco Daal, president, Canadian Real Estate, QuadReal. "The continued growth of our diversified real estate portfolio is underpinned by our high-conviction investment strategy and partnership with RBC Global Asset Management, which shares our commitment to positively impacting the communities we serve."

This information is not intended to be an offer or solicitation to buy or sell securities. The Fund is offered by RBC GAM Inc. to qualified investors only. RBC GAM Inc. is a member of the RBC Global Asset Management group of companies and an indirect wholly owned subsidiary of Royal Bank of Canada.

Investments in alternative funds are speculative and involve significant risk of loss of all or a substantial amount of your investment. Investors should consult their professional advisors and consultants regarding any tax, accounting, legal or financial considerations before making a decision as to whether the Fund is a suitable investment for them.

Commissions, trailing commissions, management fees and expenses all may be associated with fund investments. Please read the offering material before investing. Funds are not guaranteed, their values change frequently and past performance may not be repeated.

This document may contain forward-looking statements about general economic factors which are not guarantees of future performance. Forward-looking statements involve inherent risk and uncertainties, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement. All opinions in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 100,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 18 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

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About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC). RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. RBC Funds, BlueBay Funds, PH&N Funds and RBC ETFs are offered by RBC Global Asset Management Inc. (RBC GAM Inc.) and distributed through authorized dealers in Canada. The RBC GAM group of companies, which includes RBC GAM Inc. (including PH&N Institutional) and RBC Indigo Asset Management Inc., manage approximately $660 billion in assets and have approximately 1,600 employees located across Canada, the United States, Europe and Asia.

[1] The RBC Canadian Core Real Estate Fund does not have a specific ESG-related investment objective or strategy; The RBC Canadian Core Real Estate Fund's region is 'Americas', sector is "diversified', and nature of ownership (legal status) is 'non-listed.' The Fund was 3rd in Canada (out of 17). https://gresb.com/nl-en/2024-real-estate-assessment-results/

[2] The GRESB Rating is based on the GRESB Score and the quintile position an entity occupies relative to all entities participating in the GRESB Assessment globally. If an entity is placed in the top quintile, it is rated GRESB 5 Star. Each year, only 20% of entities receive this rating. GRESB 5 Stars is the highest rating and recognition for being an industry leader.

For more information, please contact:
Brandon Dorey, RBC GAM Corporate Communications, 647-262-6307

SOURCE RBC Global Asset Management Inc.