Fiera Capital Corporation and the Canadian District of the United Brotherhood of Carpenters and Joiners of America (UBC) have launched the Canadian Built Opportunities Platform, aimed at generating attractive risk-adjusted returns on capital while supporting jobs for UBC members. 

The real asset investment strategy has a commitment of more than $800 million, divided equally between real estate and infrastructure investments.

The four initial investment groups are Carpenters' Local 27, the Ontario Provincial Council of Carpenters, Drywall Acoustic Lathing & Insulation Local 675 and the Atlantic Canada Regional Council of Carpenters, Millwrights and Allied Workers. All are members of UBC, which has approximately 500,000 individual members in North America and 70,000 across Canada.

“The idea of the fund is to grow organically with the existing investors and to grow their investment, but also to have new investors in the fund,” Fiera Real Estate senior managing director and head of development and debt Pierre Pelletier, who will lead the management of the platform’s real estate investments, told RENX. 

“So the initiative could grow to up to $1 billion dollars easily in a couple of years,” he said.

Investors and workers will benefit

Pelletier said UBC was looking for an asset manager partner and approached Fiera and others about working together before deciding to go with his company.

“We believe in responsible and sustainable investing, and it aligns with them,” Pelletier said. “It's the first time that we have that type of double mandate, where it's creating long-term value for pension plan members but also generating job opportunities for UBC members.” 

All projects developed by the platform will use union labour, ensuring high standards for wages, workplace safety and benefits for union members from the Canadian District of the UBC.

While the platform will be largely focused on new development, Pelletier said it will also invest in value-add properties that union members can work on.

“We will target high-yield return projects across the country,” Pelletier said. “We don't have any projects approved yet on the real estate side, but we have a great pipeline.

“The development market across the country is suffering, so the timing is really good to launch the fund and create jobs.”

Focus on residential and industrial asset classes

There will be an emphasis on residential developments, and industrial to a lesser degree, in the platform’s portfolio. 

“Residential could be purpose-built rental, seniors housing, student housing or condos if the condo market comes back,” Pelletier said. “It's an easy exit strategy for an investor.”

Pelletier will also be open to other opportunities that come along if they can generate positive returns and employment.

Infrastructure investments will be managed by Fiera Infrastructure Inc. under the leadership of managing director Jamie Crotin. Its mandate will focus on social and civil infrastructure, transportation and renewable energy projects.

Fiera Capital and its subsidiaries

Montreal-headquartered Fiera Capital is an independent asset management firm with a growing global presence. It delivers customized and multi-asset solutions across public and private market asset classes to institutional, financial intermediary and private wealth clients. It had approximately $160.5 billion in assets under management as of June 30.

Fiera Real Estate, a wholly-owned subsidiary of Fiera Capital, is an investment management company. Together with its affiliates, it has a presence across North America, Europe, Australia and New Zealand. 

The firm focuses on core, value-add and opportunistic equity strategies and short- to medium-term debt financing. It managed more than $11.6 billion of commercial real estate globally through a range of funds and accounts as of March 31.

Fiera Infrastructure, an affiliate of Fiera Capital, is a global mid-market direct infrastructure investor operating across all sub-sectors of the infrastructure asset class. It has invested in more than 90 assets across renewables, telecommunications, transportation and public-private partnerships. 

The firm had assets under management and commitments of $4.4 billion as of March 31.