Cadillac Fairview: Investing in European real estate expansion
The investment: Our wholly owned subsidiary, Cadillac Fairview, has committed approximately $4 billion of new capital to invest across Europe over the past 18 months as part of an ambitious international expansion plan.
A big empty field outside Oxford in the United Kingdom is set to become a magnet for some of the world’s top life-sciences researchers. Our wholly owned real estate subsidiary, Cadillac Fairview, is part of a joint venture that’s developing a life-sciences-led, mixed-use innovation district near the renowned university. The big draw of Oxford North will be its almost 1 million square feet of state-of-the art laboratory and working space. But the new community will also include infrastructure like roads, retail amenities, housing, park space and a hotel. To develop the £700 million ($1.1 billion Canadian) project, Cadillac Fairview and its U.K. partner, Stanhope PLC, have joined forces with Thomas White Oxford, the development company of St. John’s College Oxford. The new district, Oxford North, will help meet growing global demand for purpose-built spaces for life-sciences research. It will also benefit from recent U.K. efforts to encourage commercialization of the innovations coming out of its universities and to attract top research talent.
In its home base of Canada, Cadillac Fairview is perhaps best known for owning and operating some of the country’s biggest malls (CF Toronto Eaton Centre and CF Pacific Centre in Vancouver) and office properties (Toronto’s iconic TD Centre). But it has grown significantly since we acquired the company more than 20 years ago, amassing a $35 billion global property portfolio encompassing office, life sciences, retail, industrial, residential and logistics assets. Like all real estate companies, Cadillac Fairview went through a difficult period during the pandemic, when the shift to remote work and government-mandated mall closures dealt a blow to its business. As Cadillac Fairview’s long-term partner and owner, we doubled down on our support for the company during that time, and committed new capital to help it expand both at home and internationally. The Oxford North project illustrates the company’s post-pandemic ambitions, which include more investments in fast-growing real estate categories such as rental residential, logistics and warehousing, life sciences and mixed-use urban developments.
Jenny Hammarlund, Managing Director and Head of Europe for Cadillac Fairview, recently opened a U.K. office. Ms. Hammarlund and her team will focus on identifying new strategic opportunities, overseeing existing investments and growing existing partnerships across Europe.
Besides Oxford North, notable investments in Europe include White City Place, a mixed-used office development in the heart of London; Long Harbour, an investment venture focused on the U.K. rental residential sector; and Boreal, a platform investing in logistics properties across Europe. These investments highlight Cadillac Fairview’s strategy of taking advantage of long-term macroeconomic trends, including rising demand for multi-family housing, the expansion of online retailing and fast delivery, and the changing nature of workspaces.
The company has also invested in multi-family residential ventures, office, mixed-use, retail, life sciences and industrial properties across the U.S., Brazil, Colombia and Mexico. With our support, Cadillac Fairview expects to grow its international portfolio in select markets in the U.S., Europe, Asia and Latin America over the next three to five years.
“As we look to grow internationally and drive portfolio growth, a key element of our strategy is to partner with leading, best-in-class companies who have deep expertise in their respective markets and share our commitment to long-term success.”
Duncan Osborne, Executive Vice President, Investments
“Despite the past few years, the future of Cadillac Fairview has never been brighter. Through our international program and our 50 million square foot land bank in Canada we are poised for exciting growth both internationally and domestically. Our growth and optimism is fueled by the confidence that OTPP has in our team to continue to drive strong results for its members.”
John Sullivan, President and CEO