The Caisse de dépôt et placement du Québec's merged real estate operations will operate under the name La Caisse, along with the rest of the pension fund manager.Christinne Muschi/Reuters
Quebec’s largest pension fund manager is rebranding its revamped real estate arm, dropping the names of subsidiaries Ivanhoé Cambridge and Otéra Capital Inc.
The Caisse de dépôt et placement du Québec, which manages $473-billion, has been restructuring its real estate operations since the start of 2024, bringing the operations of investor and developer Ivanhoé and commercial real estate debt provider Otéra in house.
The two-year integration plan was aimed at saving the Caisse $100-million annually and moved investment teams from both subsidiaries over to the Caisse last year. It was also intended to smooth governance and strengthen business relationships by eliminating duplication.
Ivanhoé was a household name in real estate circles, but its brand will be phased out over the coming months, according to an announcement earlier this week. The merged real estate operations will operate under the name La Caisse, along with the rest of the pension fund manager.
The elimination of the Ivanhoé brand follows a dismal year for the commercial real estate market. Pension funds have endured years of tough returns on real estate investments as falling traffic to offices and malls in the pandemic combined with high interest rates put pressure on property owners.
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The Caisse had $42-billion of net real estate assets, or $75-billion of gross assets including real estate debt, at the end of 2024. Through Otéra, the Caisse also had a real estate financing portfolio worth more than $30-billion.
“With this change, the real estate portfolio will benefit from a distinctive identity, which is based on the organization’s heritage, unique mission and leading investments in Québec and internationally,” the Caisse said in a news release.
The Caisse incurred $50-million of restructuring and integration expenses in 2024 and cut about 160 jobs as part of the restructuring.
The combined division is led by Rana Ghorayeb, the former head of Otéra who took over as head of real estate after former Ivanhoé CEO Nathalie Palladitcheff left the organization last year.
Ontario Teachers’ Pension Plan has been undergoing a similar restructuring, moving its 37-person investment team in house from subsidiary Cadillac Fairview Corp. Ltd. CF-N
The Caisse lost 10.8 per cent on its real estate investments last year and has lost 2.2 per cent on average over the past five years. The portfolio was overexposed to hard-hit assets such as shopping malls, but the pension fund manager has worked to rebalance the portfolio through acquisitions and sales of properties.