Fund aims to raise $1.5bn to finance real estate projects in Canada's major cities
Fiera Real Estate Investments has opened its $5.5 billion real estate debt fund to external investors, aiming to tap into growing demand for financing from nonbank and private lenders.
The Fiera Canadian Real Estate Debt Fund, structured as an open-ended limited partnership, is now offering private and institutional investors a chance to invest in its portfolio. The goal is to raise $1.5 billion in capital over the next few years to support construction projects and real estate redevelopment efforts across the country.
The fund focuses on short-term loans to real estate developers and landowners, offering financing for construction and redevelopment projects across Canada.
Martin Saulnier, head of real estate debt at Fiera, pointed out that many developers are turning to private lenders as traditional banks tighten lending criteria.
Saulnier said the dynamics in the commercial real estate sector are changing, which is driven in part by recent interest rate cuts, stabilized construction costs, and a shortage of residential units and industrial space across the country.
"The enthusiasm for development opportunities is gradually returning to the market,” Saulnier said. “Increasingly, borrowers in the Canadian commercial mortgage market are turning to non-bank lenders to meet their financing needs.
“The fund is well positioned to benefit from this trend in the real estate lending market as it seeks to offer its investors stable risk-adjusted net returns with low correlation to stock market fluctuations."
Since its inception in 2006, the real estate fund has already deployed over $5.5 billion in real estate loans and managed $800 million in assets as of mid-2024, according to the company’s press release.
Now, with private and institutional capital in the mix, the fund plans to expand its reach in Canada’s urban real estate markets, where financing demand is rising.
The fund offers flexible financing options, including first- and second-lien loans ranging from $5 million to $50 million, with terms between 12 and 24 months. The loans are backed by high-quality real estate assets in Canada’s major urban markets.
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"Opening this fund to qualified external investors is an exceptional opportunity for those seeking a reliable investment in the Canadian real estate sector,” said Pierre Pelletier, Fiera’s senior managing director and head of development and debt. “We remain true to our investment philosophy of risk management and capital preservation, and I am confident that the fund will continue to offer highly competitive returns."
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