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The Great Recession of a decade ago prompted “the real estate investing team at Quebec’s public-sector pension manager” to notice “an interesting trend in its portfolio of holdings,” writes Janet McFarland for the Globe and Mail.
The Caisse de dépôt et placement du Québec owned apartment buildings in New York, and despite the economic downturn, “demand in the buildings was virtually unchanged,” she writes, adding a review led the pension plan to “launch a new apartment strategy in 2011 to capitalize on low-risk returns where rental supply is tight.”
A number of other Canadian plans have followed the Caisse’s lead, “turning their formidable buying power toward the old-school world of rental apartment buildings,” continues McFarland.
“There’s always demand for housing,” Tyler Seaman of Oxford Properties Group Inc., the real estate arm of OMERS, is quoted saying. “Your risk in a 300-unit building is spread over 300 residents, versus a couple of tenants in a commercial development.”
More: Institutional investors are “disciplined shoppers.”

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions.ca
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