Historic names vanish in $100-million revamp of strategy
Quebec’s largest pension fund manager is eliminating the names of two well-known real estate subsidiaries as part of a major restructuring effort that began last year.
According to The Globe and Mail, the Caisse de dépôt et placement du Québec announced this week it will phase out the Ivanhoé Cambridge and Otéra Capital Inc. brands over the coming months. The $473-billion pension fund has been bringing the operations of both companies under its direct control since early 2024.
The merged real estate operations will now operate under the name La Caisse, matching the rest of the pension fund manager’s branding. This marks the end of the Ivanhoé Cambridge name, which had become well-known in real estate investment circles.
The restructuring follows a difficult period for commercial real estate markets. Pension funds across Canada have struggled with poor returns on property investments as the pandemic reduced foot traffic to offices and shopping centres. High interest rates have added additional pressure on property owners.
“With this change, the real estate portfolio will benefit from a distinctive identity, which is based on the organization’s heritage, unique mission and leading investments in Québec and internationally,” the Caisse said in a news release.
The integration plan spans two years and aims to save the Caisse $100 million annually. Investment teams from both subsidiaries moved to the main organization last year. The restructuring was designed to eliminate duplication, improve governance, and strengthen business relationships.
The changes came at a cost. The Caisse spent $50 million on restructuring and integration expenses in 2024 and cut approximately 160 jobs during the process.
Rana Ghorayeb leads the combined division. The former head of Otéra took over real estate operations after Nathalie Palladitcheff, the previous Ivanhoé Cambridge chief executive, left the organization last year.
Caisse held $42 billion in net real estate assets at the end of 2024, or $75 billion in gross assets including real estate debt. Through Otéra, the pension fund also managed a real estate financing portfolio worth more than $30 billion.
The pension fund’s real estate investments lost 10.8% last year and have declined an average of 2.2% annually over the past five years. The portfolio had significant exposure to struggling assets like shopping malls, but managers have worked to rebalance holdings through property acquisitions and sales.
Ontario Teachers’ Pension Plan has undertaken similar restructuring, moving its 37-person investment team from subsidiary Cadillac Fairview Corp. Ltd. to in-house operations.
