Canadian institutions: Real estate is the ‘alternative’ of choice

June 26, 2019 | Real Estate

A CIBC-Mellon study found that 42% of institutions prefer real estate as an alternative investment

Even as their appetite for alternative investments is growing, Canadian institutional investors are increasingly partial to the real estate category, a CIBC Mellon study revealed.

While 42% of the surveyed institutions eyed real estate, 20% preferred infrastructure, the study found. Private equity (18.7%) and private debt (17.9%) were also popular.

Alternatives: the lure of higher returns and lower risks

Canadian institutions are looking to shelter from short term market volatility and risk, while generating better returns on capital, according to CIBC Mellon director (alternatives) Jon Lofto.

In addition, Canadian investors are becoming more sophisticated in their strategic investment decision-making process. According to Mr Lofto, investors are looking to advanced analytics and big data as inputs to enhance investment decisions. As well, they are considering environmental, social and governance (ESG) factors while investing.

The ‘go-to’ real estate destinations in Canada

Montreal is highly sought-after given its well-developed tech scene and four top-rated universities.

Toronto is also drawing investment interest in view of the 19% growth in the city’s home sales during the month of May. The Greater Toronto Area (GTA) is a magnet for property investment given the growth in population due to immigration and job opportunities available across a wide swath of business sectors.


Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…