Forum Equity Partners announced it has launched REIIF, a private, open-ended fund for investment opportunities within the Canadian residential rental real estate.
Focused primarily on multifamily apartments, purpose-built student accommodations (PBSA), and co-living communities in supply-constrained markets, initial funding was completed with a $125 million capital raise and will be used to acquire a $240 million seed portfolio of residential rental real estate across Canada.
“REIIF capitalizes on the growing demand for residential rental real estate, helping to address housing affordability that has been made challenging by population growth and increasing housing prices across Canada,” said Aly Damji, Partner, Real Estate. “With a focus on high-growth sectors of multifamily apartments, PBSA, and co-living communities in supply-constrained Canadian markets, REIIF is supplying sustainable, desirable, and convenient accommodations to a wide variety of tenants.”
The fund will also strive to deliver a sector-leading impact and ESG-driven portfolio that will enhance yields, asset values and future-proof the portfolio.
“The seed portfolio, with properties located in Toronto, Ottawa, Montreal, and Vancouver, offers attractive cash flow and growth prospects with a lower risk profile than other assets given how the portfolio has been designed and constructed,” said Rajeev Viswanathan, CFO and Partner. “In addition, REIIF benefits from a spread between an attractive property yield and low cost of debt capital achieved through CMHC insured property mortgages.”
Why an impact fund?
Given the current market volatility, low-interest rates and undersupply of affordable housing, REIIF was launched to address these challenges and help with the creation of much-needed rental housing. In 2022 alone, current estimates predict that 411,000 permanent residents will be admitted into Canada.
Also, believing that socially conscious property owners and strong financial performance are intertwined, ESG targets have been incorporated into REIIF’s strategy. According to the release, “Investing in REIIF means having a meaningful positive impact in the communities we serve while owning high-quality real estate that addresses the housing challenges people face in Canada.”
