Green Urban Development: The Impact Investment Strategy of Canadian Pension Funds

46 Pages Posted: 26 May 2021 Last revised: 20 May 2022

See all articles by Alexander Beath

Alexander Beath

CEM Benchmarking Inc.

Sebastien Betermier

McGill University - Desautels Faculty of Management

Maaike Van Bragt

CEM Benchmarking Inc.

Quentin Spehner

CEM Benchmarking Inc.

Yuedan Liu

affiliation not provided to SSRN

Date Written: May 19, 2022

Abstract

This paper investigates the investment strategy that large Canadian pension funds implement in the private real estate market. Even though they manage just 6% of global pension assets in our data, Canadian pension funds are responsible for 60% of the total value of private real estate deals that directly involve a pension fund. Their strategy consists of internally developing and greening urban properties in core downtown areas. Using a common benchmarking methodology across funds, we show that this strategy delivers superior performance net of fees, creates value from the ground up, and drives the green development of major city centers.

Keywords: Pension funds, real estate, sustainable investing, active management

JEL Classification: G23

Suggested Citation

Beath, Alexander and Betermier, Sebastien and Van Bragt, Maaike and Spehner, Quentin and Liu, Yuedan, Green Urban Development: The Impact Investment Strategy of Canadian Pension Funds (May 19, 2022). Available at SSRN: https://ssrn.com/abstract=3853175 or http://dx.doi.org/10.2139/ssrn.3853175

Alexander Beath

CEM Benchmarking Inc. ( email )

80 Richmond Street West, Suite 1300
Toronto ON, M5H 2A4
Canada

Sebastien Betermier (Contact Author)

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

Maaike Van Bragt

CEM Benchmarking Inc. ( email )

80 Richmond Street West, Suite 1300
Toronto ON, M5H 2A4
Canada

Quentin Spehner

CEM Benchmarking Inc. ( email )

372 Bay St, Suite 1000
Toronto ON, M5H 2W9
Canada

Yuedan Liu

affiliation not provided to SSRN

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