Ivanhoé Cambridge has found a new partner for its retail operations in Canada, announcing Tuesday JLL will take over the operations of the retail portfolio in what the companies call an “agreement to operate retail assets through a unified approach”.
Although Ivanhoé has been actively marketing retail assets for a long time, this is not a sell transaction. There is no fairness commitment from JLL, confirmed a spokesperson for Ivanhoé Cambridge.
However, the company says the “vast majority” of its retail employees will join JLL Canada. He also indicates that the management team and “key decision-making roles” will remain in Montreal.
According to its website, Ivanhoé Cambridge currently operates 24 retail properties across Canada, including some of the country’s best-known malls such as the Montreal Eaton Center, Metropolis at Metrotown in Greater Vancouver and the Vaughan Mills complex. in Vaughan in the Greater Toronto Area. Zoned.
The portfolio comprises approximately 21 million square feet and includes properties in British Columbia, Alberta, Ontario, Quebec, Manitoba and Nova Scotia.
As part of this new alliance, JLL also plans to open an office in Quebec.
The transition will take effect on October 1.
“We are delighted to bring a world-renowned company to deepen its presence and investments in Quebec,” said Nathalie Palladitcheff, President and CEO of Ivanhoé Cambridge, in the announcement. “To focus on our core business as a seasoned and lucid real estate investor and to align and standardize our business model globally, we wanted to find a partner with the scale, background and expertise to pursue optimizing the performance of our assets. and lead the industry in shaping the future of the retail industry, thereby creating long-term value for our depositors.
“JLL’s global reputation and like-minded culture will continue to support us, while creating career opportunities for our retail teams who join the JLL family. “
JLL is currently the largest third-party commercial property management company in North America.
JLL, Ivanhoé is planning a sustainable initiative
The companies say they “share a progressive management philosophy based on achieving sustainable real estate goals” and plan to continue their efforts to improve energy efficiency and asset resilience, thus supporting Ivanhoé Cambridge’s goal achieve net zero carbon by 2040.
“Retail has gone through a period of transition over the past decade and more, where the focus is on creating enduring and vibrant experiential frameworks that engage and excite the communities it serves – and the pandemic has acted as a major accelerator of these trends. Said Greg Maloney, CEO of JLL Americas Retail, in the announcement. “Retail is the sole focus of our division and we are excited to expand our expertise and presence in Canada and Quebec, making JLL the largest third-party retail manager in Canada as well.
JLL and Ivanhoé Cambridge will develop a Center of Excellence in Sustainable Development (COES) in Quebec to accelerate the transition to sustainable and inclusive real estate.
“Thanks to this alliance, we are expanding our presence in Quebec, a strategic market for JLL’s growth given the dynamism of its real estate sector and its various industries contributing to the Canadian economy,” said Alan MacKenzie, CEO of JLL Canada. , in the press release. “We also look forward to working with Ivanhoé Cambridge to create opportunities for growth, transform ourselves through technology and build strong communities in Canada through COES.
“I especially look forward to tapping into the in-depth knowledge of Ivanhoé Cambridge’s retail team of the local retail market to combine efforts and increase the value of Ivanhoé Cambridge properties, for the benefit of retailers, their customers and our environment.
About JLL Retail and JLL
JLL Retail has more than 2,000 centers totaling 186 million square feet under management, for rent and for sale. It employs more than 215 retail brokerage experts covering 47 markets in the United States and Canada, serving more than 2,100 clients.
JLL is a professional services firm specializing in real estate and investment management. The Fortune 500 Company reported 2020 annual revenue of $ 16.6 billion, operations in over 80 countries, and a global workforce of over 92,000 as of June 30, 2021. JLL is the brand name and a registered trademark of Jones Lang LaSalle Incorporated.
About Ivanhoé Cambridge
Ivanhoé Cambridge develops and invests in real estate properties, projects and businesses around the world. It invests internationally alongside strategic partners and large real estate funds.
Through subsidiaries and partnerships, the company holds interests in more than 1,100 buildings, primarily in the industrial and logistics, office, residential and retail sectors. Ivanhoé Cambridge held $ 60.4 billion in real estate assets as at December 31, 2020 and is a real estate subsidiary of Caisse de dépôt et placement du Québec, a global investment group.