Key Takeaways
- • Desjardins' DGAM Canadian Private Real Estate Fund has $382 million in equity available to deploy, representing approximately $600 million in total investment capacity with leverage after sitting dormant since its June 2024 formation.
- • The fund is entering active acquisition mode with a transaction closing in the coming weeks, another expected to close in the New Year, and more than 30 potential deals at various stages of due diligence in its pipeline.
- • Approximately 80% of the fund's pipeline consists of off-market transactions, leveraging Desjardins' established marketplace relationships to access deal flow outside public channels.
- • The fund was seeded in 2024 with a $250 million equity commitment and acquired an initial portfolio of approximately 15 properties, with subscriptions coming primarily from Quebec-based depositors in Desjardins' network.
- • Richard Dansereau, vice-president and head of real estate investments at DGAM, characterized the fund's return to active deployment as "a bit of a contrarian play" positioned to establish market credibility for future deal origination.
Summary
Desjardins Global Asset Management's Canadian Private Real Estate Fund is transitioning from dormancy to active acquisition following its formation in June 2024. The fund has accumulated $382 million in equity available for deployment, which translates to approximately $600 million in investable capital when leveraged. According to Richard Dansereau, vice-president and head of real estate investments at DGAM, this represents significant "dry gunpowder" available to capitalize on market opportunities.
The fund's initial phase focused on acquiring a seed portfolio of approximately 15 properties funded by the original $250 million equity commitment. Since that initial deployment, the fund remained largely inactive in the acquisition market, as Dansereau explained, because the fund's principal asset providers had become over-allocated to real estate investments. This situation has now shifted, enabling the fund to pursue an active acquisition strategy.
The fund's re-entry into the market is imminent, with one transaction expected to close within weeks and another targeted for closing in the New Year. Notably, the fund has assembled a robust pipeline of more than 30 potential transactions at various stages of due diligence. Approximately 80% of these pipeline deals are structured as off-market transactions, reflecting Desjardins' leveraging of its established relationships within the real estate marketplace. Dansereau characterized this contrarian approach—deploying capital during a period when many investors have reduced real estate exposure—as "a huge calling card" designed to establish market presence and credibility for future deal origination.
The fund's strategy centers on accessing off-market deal flow, a competitive advantage derived from Desjardins' long-standing network relationships. The core-plus fund structure provides flexibility across multiple asset classes within the Canadian private real estate sector, targeting institutional and high-net-worth investors, predominantly from Desjardins' Quebec-based depositor base.
The fund's initial phase focused on acquiring a seed portfolio of approximately 15 properties funded by the original $250 million equity commitment. Since that initial deployment, the fund remained largely inactive in the acquisition market, as Dansereau explained, because the fund's principal asset providers had become over-allocated to real estate investments. This situation has now shifted, enabling the fund to pursue an active acquisition strategy.
The fund's re-entry into the market is imminent, with one transaction expected to close within weeks and another targeted for closing in the New Year. Notably, the fund has assembled a robust pipeline of more than 30 potential transactions at various stages of due diligence. Approximately 80% of these pipeline deals are structured as off-market transactions, reflecting Desjardins' leveraging of its established relationships within the real estate marketplace. Dansereau characterized this contrarian approach—deploying capital during a period when many investors have reduced real estate exposure—as "a huge calling card" designed to establish market presence and credibility for future deal origination.
The fund's strategy centers on accessing off-market deal flow, a competitive advantage derived from Desjardins' long-standing network relationships. The core-plus fund structure provides flexibility across multiple asset classes within the Canadian private real estate sector, targeting institutional and high-net-worth investors, predominantly from Desjardins' Quebec-based depositor base.
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