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Bentall Kennedy holds C$145m first close

The Toronto-based firm is targeting up to C$400m for a Canada-focused commercial real estate debt fund.

Bentall Kennedy has collected C$145 million ($116 million; €98 million) for its first Canada-based real estate debt fund, the Toronto-based investment advisor said last week.

The firm launched Bentall Kennedy High Yield Canadian Property Fund I in November 2017 with a C$200 million-C$400 million target, a spokesman told PERE.

Bentall Kennedy parent company Sun Life Financial was the first investor in the vehicle, earmarking C$30 million, and three other unnamed Canadian institutional investors together committed C$115 million. Sun Life bought the firm in September 2015 for C$560 million, PERE previously reported.

The firm is targeting a 7-9 percent internal rate of return and will invest the fund’s capital in high ratio first mortgages, mezzanine loans, land loans, second mortgages, participating debt and direct real estate equity. To date, Bentall Kennedy has deployed, via the fund, C$25.4 million into three loan commitments in Vancouver and Calgary.

“The early success in raising capital for our High Yield Canadian Property Fund is a clear recognition from the marketplace of the tremendous opportunity that our relationship with Sun Life Investment Management offers for our institutional clients,” Malcolm Leitch, the investment management division’s chief operating officer, said in Thursday’s statement.

The firm’s investment management division oversaw about C$47.5 billion of assets as of March 31.