Social infrastructure



Dedicated portfolio
  • The Fonds immobilier plans to invest $400 million in equity in social infrastructure projects in partnership with real estate developers.
  • These projects, such as public schools, sports and cultural centres and libraries, are carried out in collaboration with the government, municipality, city and/or school board concerned to support their strategy to develop and upgrade the real estate infrastructure in order to continue providing Quebecers with quality services. 
  • Through this niche, the Fonds immobilier offers services and tools to local economic development stakeholders while continuing to play an influential, job-creating role in the Québec economy.
 
Investment characteristics
  • Projects generally up to $50 million anywhere in Québec.
  • Respects the Québec model of service delivery by public sector employees.
  • In partnership with a developer and in collaboration with the government, municipality, city and/or school board concerned.
 
Projects totaling $2 billion


Business model
  • Development, construction, ownership and management of the property ensured by the Fonds immobilier and its developer-partner.
  • 30- to 35-year lease or usufruct in favour of the government, municipality, city and/or school board concerned.
  • The occupant (tenant or usufructuary) and its employees are responsible for the day-to-day management and maintenance of the property, thereby preserving jobs. 
  • The occupant has an option to buy at the end of the 7th year (or other depending on needs) following delivery of the property and every 5 years thereafter, until the end of the lease or usufruct.
  • No buyback or retrocession clause at the end of the lease or usufruct since the Fonds immobilier and its developer-partner assume any redevelopment risk.


Advantages of the model for the occupant
  • Optimizes risk and responsibility sharing.
  • Minimizes costs in the long run.
  • Allows for better control of operating budget and debt load.
  • Occupant incurs expenses only once the property is delivered. 
  • Rent or benefits are set at the outset and guaranteed.
  • Construction risks assumed by the Fonds immobilier and its developer-partner, which has a positive effect on:                         
    Project’s internal management
    Project’s external coordination
    Cost overruns
    Work schedule
  • Contracts are awarded to contractors and professionals by the Fonds immobilier and its developer-partner.
  • Delivery of a custom built, turnkey property.
  • Long-term maintenance of equipment and building envelope.
  • Several purchase options to meet occupant’s needs. 
  • Occupant assumes full responsibility for operating activities.


 

Have a real estate project in mind?

  • Contact us at :

    514 847-5700

Message from the President and CEO, Normand Bélanger, ASC, CIRC

Our teams

Geoffrey Ancinon

Geoffrey Ancinon

Project Manager

514-847-5700

gancinon@fondsimmobilierftq.com

Press Release