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 and city 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 and city 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, and city 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.

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Achievements

Manège équestre de Blainville
A 20,200-ft2building, including an outdoor riding arena, a viewing room and a storage room.

Tenant: Ville de Blainville
Partner: Medifice

 
 

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

  • February 9, 2021

    Fonds de solidarité FTQ, Investissement Québec and EDC Invest $19 Million in District M to Support its Growth Strategy

  • Read press release