BGO has been awarded a mandate to oversee asset and property management for the Toronto Transit Commission Pension Plan’s 1.7 million square feet of wholly owned properties.

The partnership aims to strengthen TTCPP’s real estate portfolio, enhance performance, and maximize risk-adjusted returns, said BGO.

Under the agreement, BGO will provide a comprehensive range of asset management services, including portfolio strategy, transaction and financing support, and environmental, social, and governance (ESG) initiatives. Additionally, its in-house property management division, BGO Properties, will handle property management, leasing, and construction management as needed.

Chetan Baweja, a managing director and portfolio manager at BGO, told Connect Canada CRE that the mandate covers a total of eight properties that span the office, retail and industrial asset classes. He said BGO could not identify the properties due to a request for confidentiality from TTCPP.

The partnership aims for long-term growth, with potential for additional services like development.

“It’s really providing holistic asset strategies and recommendations through the full asset life cycle,” said Baweja.

BGO will devise an asset strategy, business plan, capital-budgeting process and leasing strategies for the respective properties.

“So, [it’s] really a fulsome asset strategy plan that we then execute through our BGO Properties business, which does leasing and property management,” he said.

When it comes to ESG, the company’s properties division will work with the sustainable investment team to assess the portfolio’s assets and recommend initiatives across it.

“That is something we undertake for all of our clients, and it’s something that we are still to do [for TTCPP], given we just took over the account,” said Baweja. “So it’s just to provide ESG recommendations and to share that [advice] with TTC Pension Plan.”

BGO is looking to develop a long-term partnership with TTCPP, he added. Each asset will have an optimal hold period that could be short-, medium- or long-term.

The company will advise TTCPP on which hold period is best for each property.

“We’ll also give recommendations to them on on opportunities to grow their real estate allocation in Canada and globally through our BGO global platform, where we’re invested, where we have investment management and a full business in every major market and in the top sectors across the globe,” said Baweja. “So, the focus will really be the timing.”

James Clarkson, TTCPP’s acting CEO, said in a news release that the partnership will enhance the pension fund manager’s ability to optimize real estate asset management expertise and hands-on property management to strengthen long-term pension sustainability.

“BGO’s expertise will help us enhance current assets and explore new opportunities that balance risk and value for our retirees,” he said.

“There’s no development opportunity currently in the portfolio,” said Baweja. “But [development management] can be can be another service we add.”

BGO anticipates that the TTCPP mandate will help the company fulfill similar mandates for other institutional clients with the services including third-party property management and asset management, said Baweja.

The company is one of Canada’s largest real estate managers, with $28 billion in assets under management and 69 msf of property under administration as of October 31.

BGO’s Canadian platform includes more than 1,000 employees across seven offices.

Globally, BGO manages US$85 billion in assets across the office, industrial, retail, multi-residential, and hospitality sectors. Operating in 27 cities across 13 countries, the firm brings local expertise to its investment and management strategies for institutional clients.

BGO is based in Miami, but the company originated in Canada and is a subsidiary of Toronto-based Sun Life.

Pictured: Chetan Baweja, a managing director and portfolio manager at BGO

Photo: Courtesy of BGO