Investors will construct a high-quality real estate portfolio in the U.S.
TORONTO and NEW YORK, June 11, 2019 /CNW/ - The Investment Management Corporation of Ontario (IMCO) and Tishman Speyer today announced the creation of a joint venture established to build a valuable portfolio of new developments and repositioned office and multi-residential properties in major U.S. gateway cities.
The planned investment program bolsters IMCO's commitment to generating strong results for its clients through high-quality assets and developing long-term and mutually beneficial strategic partnerships. For Tishman Speyer, the venture will facilitate the expansion of its presence in major U.S. markets specifically by taking advantage of value-add opportunities.
With IMCO's initial commitment of $500 million (USD), and additional co-investment opportunities of $250 million (USD), IMCO and Tishman Speyer will jointly acquire and develop property in major supply-constrained U.S. markets. This includes New York, Washington, Boston, Los Angeles, San Francisco, Chicago and Seattle. Investments will target new development opportunities and well-located office and multi-residential assets in need of renovation – converting them into modern, class A properties.
"IMCO has partnered with Tishman Speyer to leverage its worldwide presence, as well as deep local market knowledge," said Jean Michel, Chief Investment Officer, IMCO. "This partnership allows us to access larger transactions where few bidders can compete. Tishman Speyer has a consistent track record in project delivery, which makes it an ideal partner for us."
Tishman Speyer President and CEO Rob Speyer commented, "Demand is very strong for high quality office space and multifamily housing in U.S. gateway cities, and we believe that will be the case for the foreseeable future. This alliance will help to fuel our ability to help meet that demand, working with a partner that is financially well positioned and experienced in successful investment."
IMCO prefers to develop partnerships with full-service real estate organizations that offer competitive advantages including market knowledge, deal accessibility, best-of-breed in-house expertise and strong reputations.
Targeted cities are characterized by supply constraints, which support higher rent growth as new developments lag demand. Market fundamentals across the U.S. remain strong and continue to outperform expectations. Development and value-add opportunities are economically attractive in the target markets, with stabilized return on cost at significant spreads over existing cap rates on core assets.
The Investment Management Corporation of Ontario (IMCO) manages $63.3 billion of assets on behalf of its clients. IMCO's mandate is to provide broader public-sector institutions with investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. IMCO is an independent organization, operating at arm's length from government and guided by a highly experienced and professional Board of Directors. For more information, visit www.imcoinvest.com and follow us on Twitter @IMCOinvest.
About Tishman Speyer
Tishman Speyer is a leading owner, developer, operator and fund manager of first-class real estate around the world. Founded in 1978, Tishman Speyer is active across the United States, Europe, Latin America and Asia, building and managing premier office, residential and retail space in 29 key global markets for industry-leading tenants. The firm has acquired, developed and operated a portfolio of over 175 million square feet with a total value of approximately US $94 billion spread over 411 assets. Signature assets include New York City's Rockefeller Center, São Paulo's Torre Norte, The Springs in Shanghai, Lumière in Paris and OpernTurm in Frankfurt. Tishman Speyer currently has projects at different stages of development in Boston, Beijing, Frankfurt, Los Angeles, Madrid, New York City, Rio de Janeiro, San Francisco, São Paulo, Shanghai, Shenzhen and Washington, DC. The firm also operates portfolios of prominent office properties in Berlin, Paris, Chicago and London. For more information, visit tishmanspeyer.com and find us on social @tishmanspeyer.
Emma Ninham (for IMCO)
O 416-640-5525 x 239 | M 437-986-5746
SOURCE Investment Management Corporation of Ontario [IMCO]