Fiera Real Estate has opened its Canadian Real Estate Debt Fund to qualified external investors.

The move marks a significant milestone in expanding the company’s real estate financing strategy that was first established in 2006, said Montreal-based Fiera in a news release. Through the opening, Fiera aims to raise additional capital from private and institutional investors, with the goal of achieving $1.5 billion in capitalization over the coming years.

The fund, structured as an open-ended limited partnership, is designed to provide stable and attractive returns by engaging in short-term investments with real estate developers and landowners. The investments will help fund construction projects and redevelopment efforts across Canada, said Fiera.

The strategy behind the fund focuses on preserving unitholders’ equity while generating competitive returns, offering investors both liquidity and a steady stream of income.

“Over the past 18 years, our strategy has consistently generated solid returns,” said Pierre Pelletier, senior managing director and head of development and debt at Fiera. “Opening this Fund to qualified external investors presents a fantastic opportunity for those looking to invest in the Canadian real estate market.”

Martin Saulnier, Fiera’s head of real estate, said the market’s enthusiasm for development is slowly returning. The renewed enthusiasm is being driven by interest rate cuts, stabilized construction costs, and growing demand for residential and industrial space.

The opening comes after the Bank of Canada introduced three consecutive interest-rate cuts and signalled that more reductions are coming.

“With more borrowers in the Canadian commercial mortgage market turning to non-bank lenders, the fund is well-positioned to capitalise on this trend, providing stable returns that are less correlated to stock market volatility,” he said.

The fund provides real estate developers and landowners with a range of tailored financing products, including first- and second-lien loans of between $5 million and $50 million, with terms ranging from 12 to 24 months.

The loans are secured by high-quality assets in major Canadian markets. The portfolio is diversified across regions and project types, reducing risk and enhancing potential investor returns, with a focus on quality developments in Canada’s urban centres, said Fiera.

Photo: Fiera Real Estate