HOOPP Real Estate

The HOOPP real estate portfolio forms a significant part of the Fund’s asset base. In addition to acting as an element of diversification, the income and cash flow generated by the properties plays an important role in helping meet both current and future obligations to our members.

These income streams also have a high degree of reliability and, in times of inflation, can often act as a good hedge as rental values increase. This makes real estate a good match for long-term liabilities.

Acquire and hold well-located and well-leased properties that have the potential to generate stable and predictable income streams.

Diversify the portfolio by geography and asset type (i.e. office, retail, industrial, etc.), so that the portfolio risk is diminished; this now includes a portion of the asset base invested in non-domestic properties and funds.

Augment the performance of the portfolio through development of new buildings. In this way, any created value remains with the Fund and its members.

The year 2015 was an active one for the portfolio in terms of acquisitions, development, and selective divestment activity. A total of more than $1.8 billion in new investments or investment commitments were made, including activity in all three major geographies in which HOOPP invests: Canada, the U.S. and Europe.

The graphic below illustrates the diversification of HOOPP’s Canadian real estate portfolio by geography and by product types (excluding multi-residential, property developments and limited partnerships) and represents approximately 66% of our total real estate holdings on a gross value basis.

Portfolio highlights

The commitment of $1.1 billion to real estate investment funds globally, including $243 million to four funds operating in Canada, $403 million to three funds in the U.S. and $468 million to four funds in Europe.

The acquisition of a $198 million (US$140 million) interest in 32 Old Slip, a 1.2 million square foot office tower located in lower Manhattan.

The successful completion of six development projects during the year, bringing on-stream an additional $368 million of new income producing properties; (including 150 Elgin Street (Ottawa), Broadway Shopping Centre (Bradford, England), Parkside Student Residence (Toronto), Atboro House II (Halifax), and two industrial properties in Calgary and Edmonton).

Continued progress on the construction and lease-up of other major retail, office, industrial and mixed use development projects, including Creechurch Place (London), One York (Toronto), Brentwood Town Centre and Marine Gateway (Greater Vancouver) and Spectrum Square and Gateway Centre (Mississauga).

HOOPP Real Estate

HOOPP Real Estate

Real estate investment strategies: key principles

HOOPP Real Estate portfolio performance

Portfolio highlights

Portfolio Leadership