CI Institutional Asset Management launches CI Global Private Real Estate Fund for Canadian institutional and high net worth investors Français
Mar 15, 2017, 09:00 ET
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TORONTO, March 15, 2017 /CNW/ - CI Institutional Asset Management, a division of CI Investments Inc. ("CI"), today announced the launch of a global real estate fund in association with CBRE Global Investment Partners, a division of one of the world's pre-eminent real estate services and investment companies. Through the new CI Global Private Real Estate Fund, high net worth investors and smaller Canadian institutions can now gain exposure to CBRE Global Investment Partners Global Alpha Fund, an open-ended fund with direct investments in over 1,900 properties in North America, Europe and the Asia-Pacific region.
"Investing in a global portfolio of private real estate offers many benefits, including attractive returns, diversification, low or negative correlation to stock and bond markets, a potential inflation hedge, and stable income," said Neal Kerr, President of CI Institutional Asset Management (CIIAM), which provides investment solutions to institutions, family offices and higher net worth clients. "Through CI Global Private Real Estate Fund, we are pleased to offer Canadian investors access to the expertise of a leading global real estate firm and exposure to an investment strategy that has posted exceptional risk-adjusted returns since its inception."
Ian Gleeson, CIO of CBRE Global Investment Partners, added: "We are very pleased to be teaming with such a like-minded, well-regarded firm as CI Institutional Asset Management in this initiative. Through this relationship, we are able to deliver accessibility to a unique global real estate portfolio that normally only sovereign wealth funds could access."
CI Global Private Real Estate Fund is a Canadian-based trust that will invest indirectly in units of CBRE Global Investment Partners Global Alpha Fund ("Global Alpha Fund"), which has investments in over 1,900 office, retail, logistical and residential properties in more than 20 countries representing a combined net asset value of US$2 billion. Global Alpha Fund has an objective to deliver stable dividend income of 4-5% per annum and a net total return of 9-11% per annum (in local currency) over a market cycle.
Global Alpha Fund is managed by CBRE Global Investment Partners ("CBRE GIP"), which employs 78 professionals in offices in London, Amsterdam, Boston, New York and Singapore and has over $15 billion in assets under management.* CBRE GIP is a division of CBRE Global Investors, a global real estate investment management firm that benefits from its affiliation with CBRE Group, Inc., a full-service commercial real estate services and investment company with 70,000 employees in more than 400 offices worldwide.
The Global Alpha Fund portfolio is actively managed, using CBRE GIP's industry experience, strong research capabilities and global information network to seek the best investment opportunities by sector and geographic region. The team follows a value-oriented approach with a focus on relatively high income yields and predictable cash flows. In making investments, CBRE GIP partners with specialist local operators.
CI Global Private Real Estate Fund, which is offered on an exempt basis, is now available to permitted clients with a minimum investment of US$2 million (Class I units) and to accredited investors with a minimum investment of US$150,000 (Class F units) through registered dealers.
"We have structured the fund so that it's accessible to both individual high net worth investors and smaller Canadian institutions, allowing them to avoid the hurdles of investing in offshore vehicles," Mr. Kerr said. "To further broaden the fund's appeal, we have built in features designed to enhance the liquidity of the units, given that private real estate holdings are by nature a less liquid investment."
About CI Investments – Canada's Investment Company
CI Investments Inc. is one of Canada's largest investment management companies. CI offers a broad range of investment products and services and is a subsidiary of CI Financial Corp. (TSX: CIX), an independent, Canadian-owned wealth management firm with total assets of $159.5 billion as of February 28, 2017.
About CBRE Global Investment Partners Limited
CBRE Global Investment Partners Limited ("CBRE Global Investment Partners") is the division of CBRE Global Investors that delivers investment solutions customized for clients' individual objectives by constructing portfolios using private funds, secondaries, co-investments and joint ventures, partnering with leading operators and fund managers for each strategy. Investments cover the risk spectrum from core to enhanced, can be global or regional in nature, and use a variety of investment vehicles based on clients' preferences. GIP has US$15.2 billion in assets under management* as of September 30, 2016. CBRE Global Investment Partners' AUM includes investments in programs managed by the direct side of CBRE Global Investors. CBRE Global Investment Partners Limited is authorized and regulated in the United Kingdom by the Financial Conduct Authority (FCA).
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with US$86.6 billion in assets under management* as of December 31, 2016. The firm sponsors investment programs across the risk/return spectrum for investors worldwide. CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE: CBG). It harnesses the research, investment sourcing and other resources of the world's premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors' presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
This press release contains forward-looking statements with respect to CI and its products and services. Although management believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time. This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, securities in any jurisdiction.
SOURCE CI Financial Corp.
For further information: Neal Kerr, President, CI Institutional Asset Management, (416) 681-3267, [email protected]