Ontario Teachers’ Pension Plan is working on a major overhaul of its real estate operations and is seeking a global head to lead it.
(Bloomberg) — Ontario Teachers’ Pension Plan is working on a major overhaul of its real estate operations and is seeking a global head to lead it.
The Canadian pension fund is creating an in-house real estate group that will oversee all property investments, it said in a statement Monday. The non-Canadian assets will be separated from Cadillac Fairview Corp., a C$40 billion ($29.9 billion) real estate owner and developer that is currently Teachers’ vehicle for real estate holdings.
The change means Teachers’ real estate group will operate more like other investment teams, “where investment capabilities are embedded to enable information sharing, co-sourcing, and best practices across its global platform,” the pension fund said. It plans to have the new structure in place by the beginning of 2024, with 37 employees moving from Cadillac Fairview to the fund.
The C$247 billion ($151 billion) pension plan lost 3.5% last year on its real estate investments compared with a gain of 6.7% for a benchmark. The portfolio is tilted toward Canadian offices and malls, including marquee properties such as Toronto-Dominion Centre and CF Toronto Eaton Centre.
The new real estate leader will report to Chief Investment Officer Ziad Hindo. Cadillac Fairview will be run by Salvatore Iacono, its operations chief, once longtime Chief Executive Officer John Sullivan retires in November, and will focus on growth and diversification in the Canadian market.
“We are excited to continue our decades-long relationship with CF under an evolved model that will capitalize on expertise across our two organizations and further strengthen our respective positions as a leading global investor and a best-in-class Canadian real estate owner and developer,” Hindo said in the statement.
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