Toronto-based Guardian Capital Group Ltd. (TSX:GCG) Monday announced successful launch and initial funding of its first direct real estate investment fund, Guardian Capital Real Estate Fund LP.
The fund is managed by Guardian Capital Real Estate Inc., Guardian’s real estate management subsidiary.
The fund is now actively seeking to invest in a portfolio of office, retail, light industrial and multi-residential real estate properties across Canada.
The manager’s objectives for the fund are to provide investors with annual cash yields of 6-8% and preserve capital while providing the opportunity for long-term capital appreciation. To achieve these objectives, the fund will acquire a diversified portfolio of income-producing properties, providing investors with a balanced exposure to Canadian real estate, stable cash yield, diversified tenant risk, income correlation to inflation and added value through active asset management.
Guardian Capital Group Ltd. has aligned its interest with third party investors in the fund by subscribing, through a subsidiary, $25 million of units. Guardian says this commitment is consistent with the company’s strategy of diversifying its own corporate investment portfolio while simultaneously establishing best-in-class asset management capabilities that meet the long term, strategic investment allocation needs of its existing clients and prospective new investors.
The fund is open for new investors.