Metropolis at Metrotown in Burnaby, owned by Ivanhoé Cambridge. (Courtesy Ivanhoé Cambridge)
Ivanhoé Cambridge has announced a new partnership for running its Canadian retail properties, revealing Tuesday that JLL will handle the operations of its retail portfolio under what they describe as an “agreement to operate retail assets through a unified approach.”
Even though Ivanhoé has been actively putting some retail assets up for sale for quite a while, this deal isn’t actually about selling. A spokeswoman from Ivanhoé Cambridge confirmed there’s no equity stake involved with JLL.
That said, they do mention that most of their retail staff will be moving over to JLL Canada. At the same time, their management team and “key decision-making roles” will stay based in Montreal.
According to their website, Ivanhoé Cambridge currently manages 24 retail properties across Canada, including well-known shopping centers like Montreal Eaton Centre, Metropolis at Metrotown near Vancouver, and Vaughan Mills near Toronto.
The portfolio covers roughly 21 million square feet and includes locations in British Columbia, Alberta, Ontario, Quebec, Manitoba and Nova Scotia.
As part of this new partnership, JLL is also planning to open an office in Québec City.
The changeover is set to begin on Oct. 1.
“We are excited to bring a globally renowned company to deepen its footprint and investments in Quebec,” said Nathalie Palladitcheff, president and CEO of Ivanhoé Cambridge, during the announcement. “To focus on our core business as a seasoned, clear-sighted real estate investor and to align and standardize our business model globally, we wanted to find a partner with the scale, track record and expertise to continue the optimization of our assets’ performance and lead the industry in defining the future of the retail sector, thus 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 joining the JLL family.”
JLL is already the biggest third-party manager of retail properties in North America.
JLL & Ivanhoé Team Up on Sustainability
The two companies say they share “a progressive management philosophy built on driving sustainable real estate goals” and plan ongoing efforts aimed at boosting energy efficiency and making assets more resilient – all part of supporting Ivanhoé Cambridge’s aim for net zero carbon emissions by 2040.
“Retail has been going through a transition period over the last decade plus, where the focus has become on creating sustainable and dynamic experiential settings that engage and excite the communities it serves – and the pandemic has acted as a major accelerant on those trends,” said Greg Maloney, CEO of JLL Americas Retail. “Retail is our division’s sole focus and we are thrilled to expand our expertise and footprint in Canada, and Quebec specifically – establishing JLL as the largest third-party retail manager in Canada as well.”
Together they’ll create a Centre of Excellence for Sustainability (COES) based in Quebec that aims to speed up progress toward sustainable inclusive real estate.
“Through this alliance we are expanding our presence in Quebec – which is key for growing JLL because of how vibrant its real estate market is along with many industries contributing strongly to Canada’s economy,” said Alan Mac Kenzie CEO of JLL Canada. “We’re looking forward to working with Ivanhoé Cambridge on growth opportunities through technology transformation while building strong communities across Canada via COES.
“I’m especially eager to tap into Ivanhoé Cambridge’s local retail team knowledge here – combining forces should boost value for their properties which benefits retailers themselves along with shoppers and even helps out our environment.”
About JLL Retail & JLL
JLL Retail manages more than 2,000 centres totaling 186 million square feet available for lease or sale. They have over 215 experts specializing in retail brokerage across 47 markets throughout U. S. & Canada supporting more than 2,100 clients.
J L L i s a p r o f e s s i o n a l s e r v i c e s f i r m f o c u s e d o n r e a l e s t a t e a n d i n v e s t m e n t m a n a g e m e n t. T h i s F o r t u n e 5 0 0 c o m p a n y r e p o r t e d $16.6 b i l l i o n i n r e v e n u e f o r 2 0 2 0 , w i t h b u s i n e s s i n m o r e t h an80 countries an da globa lw orkforceofm ore than92 ,000asof June30 ,20211. JL L is thenameusedb y Jones Lang La Salle Inc orporatedandisaregistered trademark.
About Iv ano hé Cambridg
Iv ano hé Cambridg developsandinvestsinrealestatepropertiesprojectsandcompaniesaroundtheworld. Itinvestsinternationallyalongside strategic partnersandmajorrealestatefunds.
Throughsubsidiariesandpartnershipsthecompanyholdsinterestsinmorethan1100buildingsprimarilyintheindustrialandlogisticsoffice residentialandretailsectors. IvanohéCambridgeheld$604billioninrealestateassetsasof Dec312020anda realestatesubsidiaryofthe Caisse de dépôt etplacementdu Québecaglobalinvestmentgroup.
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