Forum Asset Management Raises $125 Million for its Real Estate Impact Fund

News · December 16, 2021
Forum Asset Management Raises $125 Million for its Real Estate Impact Fund
  • The Forum Real Estate Income and Impact Fund (“REIIF”) is a private, open-ended fund that invests in Canadian residential rental real estate, focused on multi-family apartments, purpose-built student accommodations (PBSA), and co-living communities in supply-constrained markets
  • Initial 4.5% annual distribution (primarily return of capital) with an 8 – 12% targeted annual total net return*

  Toronto, Ontario, Canada, December 16, 2021 – Forum Asset Management (“Forum”) launched REIIF and completed initial funding on December 8, 2021 with a $125 million capital raise. The funds will be used to acquire a $240 million seed portfolio of residential rental real estate across Canada in REIIF’s targeted multi-family asset types and geographies.   “REIIF capitalizes on the growing demand for residential rental real estate, helping to address housing affordability that has been made challenging by population growth and increasing housing prices across Canada,” said Aly Damji, Partner – Real Estate. “With a focus on high-growth sectors of multi-family apartments, PBSA, and co-living communities in supply-constrained Canadian markets, REIIF is supplying sustainable, desirable, and convenient accommodations to a wide variety of tenants,” Mr. Damji continued.  

REIIF’s Investment Highlights Include:

  • Secure distributions (primarily return of capital), supported by a conservative balance sheet and strong liquidity.
  • Enhanced financial returns and a future-proofed portfolio through the adoption of robust ESG practices.
  • Inflation protection, through higher tenant turnover in PBSA and co-living, offering the opportunity to adjust rents to market levels more frequently.

  “The seed portfolio, with properties located in Toronto, Ottawa, Montreal, and Vancouver, offers attractive cash flow and growth prospects with a lower risk profile than other real assets given how the portfolio has been designed and constructed,” said Rajeev Viswanathan, CFO and Partner. “In addition, REIIF benefits from a spread between an attractive property yield and low cost of debt capital achieved through CMHC insured property mortgages,” Mr. Viswanathan added.   “Launching REIIF marks a significant step in the execution of Forum’s Asset Management Strategy,” said Richard Abboud, CEO & Founder. “We are building on Forum’s 25-year track record in real estate investing, inviting private wealth channels to invest alongside us. We remain committed to deliver Extraordinary Outcomes™ to our stakeholders.”   Details of this offering can be found in the offering document. For more information about the offering, visit: www.forumreiif.ca. This communication is for information purposes only.   *Distributions and the annual total return targets are not guaranteed. The expectation, timing and payment of distributions and the annual total return targets are based on various assumptions and subject to certain risks.  

About Forum Real Estate Income and Impact Fund

REIIF, managed by Forum Asset Management Inc., is an open-ended fund focused on Canadian residential real estate. REIIF aims to provide regular current income and capital appreciation by investing primarily in private real estate. REIIF’s investments are focused on multi-family apartments, purpose-built student accommodations, and co-living communities. The fund seeks to target supply-constrained markets to ensure diversity and resiliency of income. The fund will also strive to deliver a sector-leading impact and ESG-driven portfolio that will enhance yields, asset values and future-proof the portfolio.  

About Forum Asset Management

Forum is an investor, developer and asset manager with a focus on real estate, infrastructure, and private equity. Since its founding in 1996, Forum has worked with its partners to pursue value-added and opportunistic investments and achieve aggressive growth through innovation and active management. Forum is committed to exploring innovative and sustainable opportunities that deliver Extraordinary Outcomes™ to its stakeholders. Forum’s assets under management represent approximately C$1.7 billion in enterprise value.   Visit: www.forumam.com  

Contact

Rajeev Viswanathan, CFO and Partner 416-947-1994 rajeev@forumam.com  

Cautionary Statement

The information contained in this news release is for informational purposes only; is not investment, financial or other advice; and is not intended to be used as the basis for making an investment decision. This news release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall any part of this news release form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities of Forum’s REIIF. This news release does not constitute any form of commitment, recommendation, representation, or warranty on the part of any person. No reliance should be placed on the completeness of the information contained in this news release. This news release is not intended to be a comprehensive review of all matters concerning REIIF. Please visit www.forumreiif.ca for more information.   This news release contains forward-looking information regarding REIIF and its business, which relate to future events or future performance and reflect current expectations and assumptions. Often but not always, forward-looking information can be identified by the use of words such as “expect”, “intends”, “anticipated”, “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would” or “will” be taken, occur or be achieved. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, without limitation, risks regarding the Company’s ability to bring its products to commercial production, natural health products and digital health industries, and the risks presented by the highly regulated and competitive market concerning the development, production, sale and use of the Company’s products. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.

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