A REAL ESTATE PARTNER DEDICATED TO QUÉBEC S ECONOMIC DEVELOPMENT COUNCIL FOR CANADIAN URBANISM SUMMIT MONTRÉAL

Transcription

1 A REAL ESTATE PARTNER DEDICATED TO QUÉBEC S ECONOMIC DEVELOPMENT COUNCIL FOR CANADIAN URBANISM SUMMIT MONTRÉAL FRIDAY, OCTOBER 19

2 FONDS IMMOBILIER DE SOLIDARITÉ FTQ WAS CREATED IN 1991 BY THE FONDS DE SOLIDARITÉ FTQ, A LEADER IN VENTURE AND DEVELOPMENT CAPITAL THAT CHANNELS THE SAVINGS OF ITS 667,417 SHAREHOLDERS-SAVERS INTO BUSINESS GROWTH PROJECTS IN ORDER TO CREATE, MAINTAIN AND PROTECT JOBS, AND HELP DRIVE THE QUÉBEC ECONOMY. 2

3 FONDS DE SOLIDARITÉ FTQ QUÉBEC S LARGEST DEVELOPMENT CAPITAL NETWORK AS AT MAY 31, 2018 SHAREHOLDER BASE - 667,417 owner-savers - $40.73 share value FONDS DE SOLIDARITÉ FTQ - $14.3 billion in net assets - 7.5% shareholder s return (12-month) STABLE INFLOWS - Average of $792 million per year for the last 5 years 3 year = 7.0% 5 years = 7.8% 10 years = 5.0% CONSISTENT INVESTMENTS - Average of $771 million for the last 5 years PORTFOLIO INVESTMENTS - $9.3 billion - More than 2,800 companies, more than 500,000 jobs created, maintained or protected in Québec 1 1 Taking into account the past and current partnerships 3

4 THE COMPANY FONDS IMMOBILIER DE SOLIDARITÉ FTQ A real estate investment and development fund. Created to promote economic growth and employment in Québec by strategically investing in profitable and socially responsible real estate projects in partnership with other industry leaders. Invests in asset classes with strong growth potential in the residential, office, commercial, industrial and institutional markets. A key partner of government, municipalities, cities and school boards in the development of important socio-economic projects by investing in social infrastructure. 4

5 BUSINESS MODEL EXAMPLE OF AN INVESTMENT FOR A $10 MILLION PROJECT $10 million Project $6 million Bank financed $4 million Equity $2 million Fonds immobilier $2 million Developer-partner FONDS IMMOBILIER: 5- TO 7- YEAR EXIT HORIZON 5

6 PORTFOLIO AS AT MAY 31, PROJECTS UNDER CONSTRUCTION OR IN DEVELOPMENT valued at $2.9 billion and that will create some 24,000 jobs 50 PROPERTIES under management 2 M ft 2 2 MILLION SQUARE FEET of land slated for development (figures as at July 31, 2018) $76.3 MILLION INVESTED to date in social, community or affordable housing, resulting in the construction or renovation of 3,882 units 6

7 OUR PORTFOLIO MIXED-USE DEVELOPMENT HUMANITI MONTRÉAL In the heart of downtown Montréal, at the intersection of Viger Avenue and De Bleury Streets, in the Quartier international, the mixeduse HUMANITI project offers a spectacular view of Place Jean- Paul-Riopelle. It will consist of a 193-room hotel, 314 apartments, 158 condos, 57,000 square feet of office space and 17,000 square feet of commercial space. Project cost: $200 million Aiming for LEED and WELL TM certifications. PARTNER: Cogir Immobilier 7

8 OUR PORTFOLIO MIXED-USE DEVELOPMENT SOLAR UNIQUARTIER BROSSARD A vast mixed-used project on the South Shore and the first Transit-Oriented Development (TOD) focused around the future light-rail system (REM). Solar Uniquartier will consist of three components plus a hotel, conference centre and multi-use complex: Residential: 2,600 units: Magellan: A tower housing 386 condominiums, built in Phase 1; Lumeo: A 248-unit tower built in Phase 1; Business: 500,000 square feet, of which 186,000 square feet will be built in Phase 1; Commercial: 600,000 square feet, of which 145,000 square feet will be built in Phase 1; A public event space with a capacity of 5,000 will be built facing the train station and a 129,000-square-foot park will be laid out in the centre of the neighbourhood. Project cost: $1.3 billion PARTNERS: Devimco Immobilier, Fondaction 8

9 OUR PORTFOLIO RESIDENTIAL TOUR DES CANADIENS 2 MONTRÉAL An emblematic building with a skyway to the Bell Centre, offering 590 condos over 51 floors. PARTNERS: Cadillac Fairview, Canderel, Club de hockey Canadien 9

10 OUR PORTFOLIO RESIDENTIAL BASSINS DU HAVRE MONTRÉAL A 5-phase project on the banks of the Lachine Canal consisting of over 500 condos. Aiming for LEED certification. PARTNERS: Prével, Rachel Julien, Claridge 10

11 INSTITUTIONAL INVESTORS: CORPORATE SOCIAL RESPONSIBILITY IN CITY (RE)BUILDING 11

12 MISSION, VISION, VALUES Mission Mission Make profitable and socially responsible real estate investments to help create and maintain jobs. Vision Objectives Key Strategies Vision Become the preferred partner of today s and tomorrow s real estate leaders. Key Projects Values Values Ethics Teamwork - Creativity and innovation - Efficiency - Discipline 12

13 INSTITUTIONAL INVESTORS: CORPORATE SOCIAL RESPONSIBILITY IN CITY (RE)BUILDING FONDS IMMOBILIER DE SOLIDARITÉ FTQ Fonds immobilier takes its origins in collective and democratic actions. Shareholders are individuals, no large investors. Social responsibility and Economic development mission are supported by both federal and provincial governments through tax credits attached to purchases of shares Responsibility and accountability are paramount 13

14 INSTITUTIONAL INVESTORS: CORPORATE SOCIAL RESPONSIBILITY IN CITY (RE)BUILDING FONDS IMMOBILIER DE SOLIDARITÉ FTQ TRIPLE BOTTOM LINE: Return on investment Sustainability and fairness Community benefits 14

15 INSTITUTIONAL INVESTORS: CORPORATE SOCIAL RESPONSIBILITY IN CITY (RE)BUILDING MOST RELEVANT INITIATIVES BY FONDS IMMOBILIER Innovation and certifications relating to sustainability Funding tools to support social and affordable housing Funding tools for public infrastructures Code of ethics pertaining to investments, and Compliance and integrity audits pertaining to partners and suppliers 15

16 LES HABITATIONS LE DOMAINE - MONTRÉAL PARTNERS: Gérer son quartier, Fondation Lucie et André Chagnon, Desjardins, CMHC. SOCIAL, COMMUNITY AND AFFORDABLE HOUSING

17 SOCIAL, COMMUNITY AND AFFORDABLE HOUSING BUILDING THROUGH SOLIDARITY By investing in funds that back social, community or affordable housing projects, the Fonds immobilier helps low- and modest-income families gain access to quality housing. By encouraging diversity and social cohesion, the Fonds immobilier fosters the emergence of a modern, responsible vision of urban development that HELPS DRIVE THE LOCAL ECONOMY. TO DATE, THE FONDS IMMOBILIER HAS INVESTED $76.3 MILLION, HELPING TO BUILD OR RENOVATE 3,882 HOUSING UNITS. 17

18 SOCIAL, COMMUNITY AND AFFORDABLE HOUSING INVESTISMENTS DEDICATED TO SOCIAL, COMMUNITY AND AFFORDABLE HOUSING Fonds d investissement de Montréal (FIM) Created by Phyllis Lambert, the FIM is a financial tool that enables non-profit organizations (NPOs) and housing coops to purchase properties for conversion into quality community housing. Fonds d acquisition Québécois (FAQ) The success of the FAM prompted other areas of Quebec to adopt the model to assist other member groups of the Association des groupes de ressources techniques du Québec. Fonds d acquisition de Montréal (FAM) An investment fund that provides loans to purchase land or buildings for community housing while awaiting funding from the Société d habitation du Québec (SHQ) under the Accès Logis Québec program. Projects are overseen by the Groupe de ressources techniques (GRT) Bâtir son quartier. CARPE DIEM, LÉVIS Fonds d acquisition québécois 45 units for low-income households 18

19 SOCIAL, COMMUNITY AND AFFORDABLE HOUSING INVESTISMENTS DEDICATED TO SOCIAL, COMMUNITY AND AFFORDABLE HOUSING Fonds d aide à la rénovation de l habitation communautaire Created in partnership with the Fiducie du Chantier de l économie sociale, this fund provides funding to renovate community housing built in the 1980s with financing from the Canada Mortgage and Housing Corporation (CMHC). Les Habitations Le Domaine A project of NPO Gérer son quartier involving the acquisition of 726 units spread over 111 buildings in Montréal that will be renovated and converted into affordable housing. LES HABITATIONS LE DOMAINE, MONTRÉAL 19

20 SOCIAL, COMMUNITY AND AFFORDABLE HOUSING INVESTISMENTS DEDICATED TO SOCIAL, COMMUNITY AND AFFORDABLE HOUSING Han-Logement An investment fund currently financing the construction of 100 affordable, adapted units for individuals with a physical or intellectual disability. Fonds d investissement pour le logement étudiant (FILE) An investment fund that will finance the construction of some 300 units, including 500 affordable room for students. The student housing projects will be overseen by non-profits such as Unité de travail pour l implantation de lodgement étudiant (UTILE). The 90-unit Note des bois housing co-op is the first project to be financed by this fund. HAN-LOGEMENT, ESTRIE 100 affordable, adapted units for individuals with reduced mobility 20

21 INVESTMENTS IN SOCIAL, COMMUNITY AND AFFORDABLE HOUSING PROJECTS Funds Inception and Termination Capitalization Investment by the Fonds immobilier Units Built or Renovated Partners Partners Fonds d investissement de Montréal Manager: Bâtir son quarter $5.0 M 1 $2.5 M 302 Banque Nationale du Canada Banque Royale Fédération des Caisses Desjardins Hydro-Québec Les Investissements Claridge SRB Fonds immobilier de solidarité FTQ Fonds d investissement de Montréal II Manager: Bâtir son quarter 2007 $5.0 M 1 $1.0 M 144 Banque Nationale du Canada Caisse d économie solidaire Desjardins Fondation Lucie et André Chagnon Hydro-Québec Les Investissements Claridge SRB Fonds immobilier de solidarité FTQ Fonds d investissement de Montréal III Manager: Bâtir son quarter 2011 $8.5 M 1 $4.0 M 300 Caisse d économie solidaire Desjardins Fédération des Caisses Desjardins Fondation Lucie et André Chagnon Les Investissements Claridge SRB Fonds immobilier de solidarité FTQ Fonds d investissement de Montréal IV Manager: Bâtir son quarter Fonds d acquisition de Montréal Manager: Bâtir son quarter 2016 $20.3 M $5.0 M At the start-up phase Banque Nationale du Canada Caisse Desjardins des Travailleuses et Travailleurs unis Fédération des Caisses Desjardins $10.0 M 3 $10.1 M 933 Fonds immobilier de solidarité FTQ Fondation de la famille J.W. McConnell Fondation J. Armand Bombardier Fondation Lucie et André Chagnon Fonds immobilier de solidarité FTQ Fonds d acquisition québécois Manager: AGRTQ $15.0 M 3 $15.1 M 1207 Fonds immobilier de solidarité FTQ Fonds d aide à la rénovation de l habitation communautaire Manager: Fiducie du Chantier de l économie sociale 2015 $32.5 M $21.0 M 243 Fondation de la famille J.W. McConnell SSQ Groupe Financier Fonds immobilier de solidarité FTQ Les Habitations Le Domaine Gestionnaire: Bâtir son quartier 2017 $9.5 M $9.5 M 726 Desjardins Fondation Lucie et André Chagnon Gérer son quartier SCHL Fonds immobilier de solidarité FTQ Han-Logement 2017 $15.0 M $2.6 M 27 Han-Logement Fonds immobilier de solidarité FTQ Le Boisé UTILE Manager: Unité de travail pour l implantation de logements étudiants (UTILE) Fonds d investissement pour le logement étudiant (FILE) Manager: Fiducie du Chantier de l économie sociale 2017 $0.5 M At the start-up phase Fonds immobilier de solidarité FTQ 2018 $10.0 M $5.0 M At the start-up phase Fondaction Fondation de la famille J.W. McConnell Fonds immobilier de solidarité FTQ Total Total investments $76.3 M 3,882 units built or renovated in approximately 100 buildings 1 Closed-end fund - 2 merging of Fonds I (2008) and Fonds II (2012) - 3 Fund for temporary loans enabling reinvestments - 4 Merging of Fonds I (2009) and Fonds II (2013) 21

22 SOCIAL INFRASTRUCTURE 22

23 SOCIAL INFRASTRUCTURE DEDICATED PORTFOLIO The Fonds immobilier plans to invest $400 million in equity in social infrastructure projects in partnership with real estate developers. These projects, such as public schools, sports and cultural centres and libraries, are carried out in collaboration with the government, municipality, city and/or school board concerned. Through this niche, the Fonds immobilier offers services and tools to local economic development stakeholders while continuing to play a structuring and job-creating role in the Québec economy. 23

24 SOCIAL INFRASTRUCTURE BUSINESS MODEL Development, construction, ownership and management of the property ensured by the Fonds immobilier and its developer-partner. 30- to 35-year lease or usufruct in favour of the government, municipality, city and/or school board concerned. The occupant (tenant or usufructuary) and its employees are responsible for the day-to-day management and maintenance of the property, thereby preserving jobs. The occupant has an option to buy at the end of the 7th year (or other depending on needs) following delivery of the property and every 5 years thereafter, until the end of the lease or usufruct. No buyback or retrocession clause at the end of the lease or usufruct since the Fonds immobilier and its developer-partner assume any redevelopment risk. Development and construction year lease or usufruct Management and maintenance Option to buy 24

25 SOCIAL INFRASTRUCTURE TYPES OF PROJECTS UNDER STUDY Industrial parks in partnership with municipalities - Land acquisition - Development, construction and management - Industrial space for rent Student housing Public schools Community and cultural centres Libraries Sports complex with space for rent to a municipality, a school board and a figure skating school 25

26 FONDS IMMOBILIER DE SOLIDARITÉ FTQ 545 CRÉMAZIE BOUL. EAST SUITE 1210 MONTRÉAL (QUÉBEC) CANADA H2M 2V FONDSIMMOBILIERFTQ.COM