History
A history marked by passion, growth and innovation
Founded in 1984, and driven by passionate, visionary people, SITQ enjoyed rapid growth in Québec very early on. Over time, the Company boldly took roads less travelled, ultimately expanding its operations to Europe, followed by the U.S., other Canadian provinces, and elsewhere across the world.
SITQ has contributed significantly to Québec’s economic development, helping to create a sound real estate industry, and promoting it internationally. SITQ is a success story in the purest sense, which can be chronicled in five chapters:
SITQ has contributed significantly to Québec’s economic development, helping to create a sound real estate industry, and promoting it internationally. SITQ is a success story in the purest sense, which can be chronicled in five chapters:
From idea to founding
An idea that gave birth to one of the seminal French-language real estate firms
The idea of SITQ originated from the Caisse de dépôt et placement du Québec, during the early 80s recession. Like many other financial institutions in Québec, most of the Caisse’s real estate investments were in the form of mortgage-backed securities. But as the recession sent property values tumbling, holding properties directly became increasingly attractive, and also had the benefit of being inflation-proof.
The need for a dedicated property manager
Although interesting, real estate investing required thorough expertise, substantial capital and numerous resources. This led the Caisse to explore in March 1983 the possibility of grouping together financial institutions for the purpose of creating a company that would specialize in evaluating, acquiring and managing properties.
Talks that quickly paved the way to action
Three financial institutions joined the preliminary discussions as early as May 1983. By May 16, the Caisse’s board ratified the recommendation to set up a real estate firm. On October 1, SITQ (Société immobilière Trans-Québec) was up and running, with the Caisse as its sole shareholder.
Seeking other shareholders
During the start-up period, the Caisse began seeking other shareholders. In January 1984, six institutions manifested their intention to acquire a stake in the company. On March 20, the seven partners signed the subscription and shareholder agreements.
SITQ is born
In May 1984, the idea of owning and operating a real estate firm jointly with other institutions became a full-fledged reality. SITQ became the first large French-language real estate firm in Québec. Its mandate would be to run and manage income properties, e.g. office buildings and shopping malls. It would also target investment opportunities for its shareholders, wherein they would own shares to varying degrees of newly acquired properties, while the firm would retain a 5% stake in the properties, which it would syndicate. In essence, the firm’s role would be threefold: property administrator, portfolio manager and minority investor.
SITQ: The early days
• $9M in initial capital
• 70 employees
• 8 properties under management in Montréal, Québec City and Trois-Rivières
The idea of SITQ originated from the Caisse de dépôt et placement du Québec, during the early 80s recession. Like many other financial institutions in Québec, most of the Caisse’s real estate investments were in the form of mortgage-backed securities. But as the recession sent property values tumbling, holding properties directly became increasingly attractive, and also had the benefit of being inflation-proof.
The need for a dedicated property manager
Although interesting, real estate investing required thorough expertise, substantial capital and numerous resources. This led the Caisse to explore in March 1983 the possibility of grouping together financial institutions for the purpose of creating a company that would specialize in evaluating, acquiring and managing properties.
Talks that quickly paved the way to action
Three financial institutions joined the preliminary discussions as early as May 1983. By May 16, the Caisse’s board ratified the recommendation to set up a real estate firm. On October 1, SITQ (Société immobilière Trans-Québec) was up and running, with the Caisse as its sole shareholder.
Seeking other shareholders
During the start-up period, the Caisse began seeking other shareholders. In January 1984, six institutions manifested their intention to acquire a stake in the company. On March 20, the seven partners signed the subscription and shareholder agreements.
SITQ is born
In May 1984, the idea of owning and operating a real estate firm jointly with other institutions became a full-fledged reality. SITQ became the first large French-language real estate firm in Québec. Its mandate would be to run and manage income properties, e.g. office buildings and shopping malls. It would also target investment opportunities for its shareholders, wherein they would own shares to varying degrees of newly acquired properties, while the firm would retain a 5% stake in the properties, which it would syndicate. In essence, the firm’s role would be threefold: property administrator, portfolio manager and minority investor.
SITQ: The early days
• $9M in initial capital
• 70 employees
• 8 properties under management in Montréal, Québec City and Trois-Rivières
Years of dazzling growth in Québec
1984-1992: Years of dazzling growth in Québec
Buoyed by a real estate market that was beginning to recover, SITQ invested extensively during its early years. It bought 27 shopping malls across Québec between 1985 and 1992. During that same time, its Montréal and Québec City portfolio grew to 70 industrial holdings, and over a dozen office buildings were added to the mix. This naturally led to more people being hired, as the staff increased from 70 to 500.
Unabated growth during a recession
In the early 1990s, a severe economic crisis hit every business sector hard. SITQ was facing a recession for the first time since its founding. Despite difficult economic conditions, the executive leadership remained confident and focused on maintaining operational efficiency, controlling operating costs, leasing and customer service. With the support of sound shareholders, SITQ continued to acquire new properties and be among the most active on the market.
Strategy focused on expanding abroad
In late 1989, SITQ began exploring the possibility of expanding outside Québec. Despite being a young firm, SITQ enjoyed excellent credibility and occupied a prime position in the Québec real estate market, which was however beginning to shrink. SITQ saw the international scene as the best way to fuel and diversify the firm’s growth. This determination was further reinforced during the recession.
Change required
SITQ’s quick expansion prompted this observation: the firm’s property holding method was growing increasingly complex. Property syndication, which enabled investors to pick their investments, was beginning to create serious administrative problems. The bigger the transaction, the more complicated the process was becoming. In late 1992, the board approved a major amendment to the company’s statutory filings and resolved that effective 1993, the company would gradually become the sole owner of the properties in its portfolio. SITQ therefore went from managing properties for others to a fully integrated real estate firm that held, managed and invested in properties.
Buoyed by a real estate market that was beginning to recover, SITQ invested extensively during its early years. It bought 27 shopping malls across Québec between 1985 and 1992. During that same time, its Montréal and Québec City portfolio grew to 70 industrial holdings, and over a dozen office buildings were added to the mix. This naturally led to more people being hired, as the staff increased from 70 to 500.
Unabated growth during a recession
In the early 1990s, a severe economic crisis hit every business sector hard. SITQ was facing a recession for the first time since its founding. Despite difficult economic conditions, the executive leadership remained confident and focused on maintaining operational efficiency, controlling operating costs, leasing and customer service. With the support of sound shareholders, SITQ continued to acquire new properties and be among the most active on the market.
Strategy focused on expanding abroad
In late 1989, SITQ began exploring the possibility of expanding outside Québec. Despite being a young firm, SITQ enjoyed excellent credibility and occupied a prime position in the Québec real estate market, which was however beginning to shrink. SITQ saw the international scene as the best way to fuel and diversify the firm’s growth. This determination was further reinforced during the recession.
Change required
SITQ’s quick expansion prompted this observation: the firm’s property holding method was growing increasingly complex. Property syndication, which enabled investors to pick their investments, was beginning to create serious administrative problems. The bigger the transaction, the more complicated the process was becoming. In late 1992, the board approved a major amendment to the company’s statutory filings and resolved that effective 1993, the company would gradually become the sole owner of the properties in its portfolio. SITQ therefore went from managing properties for others to a fully integrated real estate firm that held, managed and invested in properties.
Expanding abroad
1993- 2000: Expanding abroad
SITQ began 1993 on a positive note. It not only overcame the recession, but actually helped sustain the Québec real estate market by being one of the rare investors to remain active. Also, the firm’s new structure was better suited to its growth and expansion plans abroad. With commercial real estate in most Western countries at the bottom end of the cycle, international acquisition opportunities became a priority for the executive leadership.
Compelling first steps in Europe
SITQ entered the international market in 1993, with a joint investment in Belgium, with Compagnie immobilière de Belgique. But the company really widened its international foothold the following year, with three investments, in Belgium, Northern Ireland and England.
Becoming increasingly global
In 1995, SITQ formed a partnership in the U.S. that led to the joint acquisition of two office buildings in Charlotte, North Carolina. SITQ also made its first investment in France, an industrial park in suburban Paris. Six new U.K. shopping malls were added to the portfolio the next year, while SITQ jointly acquired another property in Denver, Colorado with a subsidiary of the New York Life Insurance Company.
Acquiring a share in Bentall, an important milestone
While it continued to expand internationally, SITQ was also looking to extend its operations at home beyond Québec. Bentall, one of the jewels of Western Canada’s real estate industry, was seeking new financial partners. SITQ quickly showed an interest, and in 1996, it acquired a share in the company, whose portfolio included quality properties in British Columbia, Manitoba, Saskatchewan and California.
La Défense: a historic investment
In 1996, SITQ began negotiating a deal that consisted in wholly acquiring two office buildings and an 80% stake in three others, all located in the La Défense business district just west of Paris. The talks lasted several months. In 1997, the deal was finalized, making it the largest ever recorded in recent Paris real estate history. One year later, SITQ acquired 80% of two other properties in Paris, and 100% of a third property.
Using real estate development to build value
SITQ always invested in its properties to renovate and modernize them, but in 1999 it got involved in the actual construction of new buildings. During that year, it set up its own Development & Construction unit. SITQ focused on the New Economy from the outset, and started building technology business parks in the Greater Montréal Area, such as Cité Multimédia. It also oversaw the construction of Centre CDP Capital, which was part of the large-scale Quartier international de Montréal urban development project.
SITQ began 1993 on a positive note. It not only overcame the recession, but actually helped sustain the Québec real estate market by being one of the rare investors to remain active. Also, the firm’s new structure was better suited to its growth and expansion plans abroad. With commercial real estate in most Western countries at the bottom end of the cycle, international acquisition opportunities became a priority for the executive leadership.
Compelling first steps in Europe
SITQ entered the international market in 1993, with a joint investment in Belgium, with Compagnie immobilière de Belgique. But the company really widened its international foothold the following year, with three investments, in Belgium, Northern Ireland and England.
Becoming increasingly global
In 1995, SITQ formed a partnership in the U.S. that led to the joint acquisition of two office buildings in Charlotte, North Carolina. SITQ also made its first investment in France, an industrial park in suburban Paris. Six new U.K. shopping malls were added to the portfolio the next year, while SITQ jointly acquired another property in Denver, Colorado with a subsidiary of the New York Life Insurance Company.
Acquiring a share in Bentall, an important milestone
While it continued to expand internationally, SITQ was also looking to extend its operations at home beyond Québec. Bentall, one of the jewels of Western Canada’s real estate industry, was seeking new financial partners. SITQ quickly showed an interest, and in 1996, it acquired a share in the company, whose portfolio included quality properties in British Columbia, Manitoba, Saskatchewan and California.
La Défense: a historic investment
In 1996, SITQ began negotiating a deal that consisted in wholly acquiring two office buildings and an 80% stake in three others, all located in the La Défense business district just west of Paris. The talks lasted several months. In 1997, the deal was finalized, making it the largest ever recorded in recent Paris real estate history. One year later, SITQ acquired 80% of two other properties in Paris, and 100% of a third property.
Using real estate development to build value
SITQ always invested in its properties to renovate and modernize them, but in 1999 it got involved in the actual construction of new buildings. During that year, it set up its own Development & Construction unit. SITQ focused on the New Economy from the outset, and started building technology business parks in the Greater Montréal Area, such as Cité Multimédia. It also oversaw the construction of Centre CDP Capital, which was part of the large-scale Quartier international de Montréal urban development project.
Specialization and well defined diversification
2001-2007: Specialization and well defined diversification
The new millennium began with an economic slowdown triggered by the bursting of the dot-com bubble and the 9/11 attacks in 2001. SITQ responded by realigning its portfolio. The firm decided to focus on investing in quality office buildings, generally more stable assets during turbulent market conditions. It sold its Class B properties, industrial properties and shopping malls. SITQ ultimately sold many properties since their value was still high in most markets.
Turning the attention to major urban centres instead of countries
Another major strategic shift during that same period was to focus the portfolio on dynamic, liquid real estate markets capable of absorbing new investments and whose economic activity was both significant and diversified. SITQ therefore began to progressively concentrate on major urban centres, first in Canada, then in the U.S. and Europe. Essentially, it gradually turned away from a country-based investment strategy, focusing more on cities, although the strategy did leave room for also capitalizing on exceptional opportunities outside the newly adopted parameters.
Growing importance of asset management
The strategic shift helped redefine the firm. Its focus was now acquisitions and dispositions. SITQ began managing its portfolio with renewed energy, in order to maximize asset performance. Despite the buying and selling, SITQ continued to maintain a long-term presence in the urban hubs it was active in. In 2003, SITQ put together a team specialized in asset management whose expertise revolved around optimizing the value of portfolio investments, especially outside Québec.
Real estate development outside Québec
Between 2001 and 2007, SITQ’s real estate development strategy broadened considerably. In addition to its many projects in Québec, SITQ was also active outside the province, i.e. Paris, London, New York, Seattle, Calgary and Toronto. Over the years, SITQ went on to use real estate development to generate higher investment returns and enhance the quality of its portfolio.
Expanding in rapidly growing emerging markets
In 2007, SITQ began multiplying its prospecting activities in emerging markets that posted higher growth than the economies of North America and Western Europe. This resulted in fruitful partnerships with local businesses, after a period of familiarization with the characteristics of the region. SITQ now expects to continue to operate for many years in China and India, whose economies are still growing, whereas its presence in other markets will be determined by how quickly investment values can be maximized.
The new millennium began with an economic slowdown triggered by the bursting of the dot-com bubble and the 9/11 attacks in 2001. SITQ responded by realigning its portfolio. The firm decided to focus on investing in quality office buildings, generally more stable assets during turbulent market conditions. It sold its Class B properties, industrial properties and shopping malls. SITQ ultimately sold many properties since their value was still high in most markets.
Turning the attention to major urban centres instead of countries
Another major strategic shift during that same period was to focus the portfolio on dynamic, liquid real estate markets capable of absorbing new investments and whose economic activity was both significant and diversified. SITQ therefore began to progressively concentrate on major urban centres, first in Canada, then in the U.S. and Europe. Essentially, it gradually turned away from a country-based investment strategy, focusing more on cities, although the strategy did leave room for also capitalizing on exceptional opportunities outside the newly adopted parameters.
Growing importance of asset management
The strategic shift helped redefine the firm. Its focus was now acquisitions and dispositions. SITQ began managing its portfolio with renewed energy, in order to maximize asset performance. Despite the buying and selling, SITQ continued to maintain a long-term presence in the urban hubs it was active in. In 2003, SITQ put together a team specialized in asset management whose expertise revolved around optimizing the value of portfolio investments, especially outside Québec.
Real estate development outside Québec
Between 2001 and 2007, SITQ’s real estate development strategy broadened considerably. In addition to its many projects in Québec, SITQ was also active outside the province, i.e. Paris, London, New York, Seattle, Calgary and Toronto. Over the years, SITQ went on to use real estate development to generate higher investment returns and enhance the quality of its portfolio.
Expanding in rapidly growing emerging markets
In 2007, SITQ began multiplying its prospecting activities in emerging markets that posted higher growth than the economies of North America and Western Europe. This resulted in fruitful partnerships with local businesses, after a period of familiarization with the characteristics of the region. SITQ now expects to continue to operate for many years in China and India, whose economies are still growing, whereas its presence in other markets will be determined by how quickly investment values can be maximized.
Outlook for the future
Outlook for the future
After nearly 10 years of growth, 2008 began with the economy in turmoil. The downturn spread worldwide, and continued into 2009. A steady stream of bad news and sharp market declines served as reminders that real estate is cyclical and subject to extreme fluctuations. Nevertheless, SITQ managed to sell numerous properties at peak market prices, thus freeing up capital to make acquisitions again when the time is right.
A year of celebrations and expansion
In 2009, two major events marked the year for SITQ. First, its 25th anniversary. Many activities were organized to celebrate the milestone, including the release of Investir, construire et habiter le monde, a book highlighting the 25-year history of SITQ.
Second, the activities and staff of Cadim – also a member of the Real Estate group – were integrated into SITQ’s, thus diversifying and nearly doubling the latter’s holdings and restructuring its operations around three core businesses: office buildings, hotels, multi-residential properties and seniors’ residences, investment funds, and real estate financing. The Company has assets in Canada, the U.S., Europe and in promising emerging economies such as India. It also operates independent offices in Paris and New Delhi, which it opened to be closer to its main target markets.
Fernand Perreault: A building force at SITQ
Along with the 25th anniversary celebrations and the expansion resulting from the integration of new teams and business activities, 2009 was marked by yet another event. Fernand Perreault, a building force at SITQ, retired from the Caisse de dépôt et placement du Québec after 22 years with the Real Estate group, followed by one more year as interim President and CEO of the Caisse and as strategic advisor to current Caisse President and CEO Michael Sabia.
Perreault assumed the helm of a then young SITQ in February 1987, after several years at the Canada Mortgage and Housing Corporation (CMHC), where he began his career after obtaining his law degree from the University of Ottawa. He quickly rallied the troops and pursued the expansion efforts started by his predecessor. A visionary man, he had great ambitions for SITQ and was steadfast in his commitment to growing the Company and its reputation within the industry. Under his leadership, SITQ rapidly became a primary force in Québec, and eventually began operating on the international stage, becoming one of the first real estate firms to actively invest in foreign markets, which it continues to do successfully.
In 1995, Perreault was asked to take over the Caisse’s Real Estate group. Although saddened to leave SITQ, he continued to work very closely with the Company as he was in charge of coordinating the activities of the group’s subsidiaries and also chaired their boards. He therefore remained firmly entrenched in the expansion strategies of the Company he influenced so profoundly, and for which he continually nurtured the highest ambitions.
Well positioned
Operating in three major business sectors and active in many of the globe’s largest cities, SITQ is among the world’s real estate leaders. The Company is reputed for its rigorous acquisition-and-disposition strategy, buying and selling at the right time, successfully capitalizing on having diversified assets in asynchronous markets. Very solid financially, thanks primarily to the excellent management of its liquid assets and financing, a multidisciplinary team known for its expertise, and being firmly established worldwide, SITQ is clearly well positioned to meet the challenges of the future successfully.
After nearly 10 years of growth, 2008 began with the economy in turmoil. The downturn spread worldwide, and continued into 2009. A steady stream of bad news and sharp market declines served as reminders that real estate is cyclical and subject to extreme fluctuations. Nevertheless, SITQ managed to sell numerous properties at peak market prices, thus freeing up capital to make acquisitions again when the time is right.
A year of celebrations and expansion
In 2009, two major events marked the year for SITQ. First, its 25th anniversary. Many activities were organized to celebrate the milestone, including the release of Investir, construire et habiter le monde, a book highlighting the 25-year history of SITQ.
Second, the activities and staff of Cadim – also a member of the Real Estate group – were integrated into SITQ’s, thus diversifying and nearly doubling the latter’s holdings and restructuring its operations around three core businesses: office buildings, hotels, multi-residential properties and seniors’ residences, investment funds, and real estate financing. The Company has assets in Canada, the U.S., Europe and in promising emerging economies such as India. It also operates independent offices in Paris and New Delhi, which it opened to be closer to its main target markets.
Fernand Perreault: A building force at SITQ
Along with the 25th anniversary celebrations and the expansion resulting from the integration of new teams and business activities, 2009 was marked by yet another event. Fernand Perreault, a building force at SITQ, retired from the Caisse de dépôt et placement du Québec after 22 years with the Real Estate group, followed by one more year as interim President and CEO of the Caisse and as strategic advisor to current Caisse President and CEO Michael Sabia.Perreault assumed the helm of a then young SITQ in February 1987, after several years at the Canada Mortgage and Housing Corporation (CMHC), where he began his career after obtaining his law degree from the University of Ottawa. He quickly rallied the troops and pursued the expansion efforts started by his predecessor. A visionary man, he had great ambitions for SITQ and was steadfast in his commitment to growing the Company and its reputation within the industry. Under his leadership, SITQ rapidly became a primary force in Québec, and eventually began operating on the international stage, becoming one of the first real estate firms to actively invest in foreign markets, which it continues to do successfully.
In 1995, Perreault was asked to take over the Caisse’s Real Estate group. Although saddened to leave SITQ, he continued to work very closely with the Company as he was in charge of coordinating the activities of the group’s subsidiaries and also chaired their boards. He therefore remained firmly entrenched in the expansion strategies of the Company he influenced so profoundly, and for which he continually nurtured the highest ambitions.
Well positioned
Operating in three major business sectors and active in many of the globe’s largest cities, SITQ is among the world’s real estate leaders. The Company is reputed for its rigorous acquisition-and-disposition strategy, buying and selling at the right time, successfully capitalizing on having diversified assets in asynchronous markets. Very solid financially, thanks primarily to the excellent management of its liquid assets and financing, a multidisciplinary team known for its expertise, and being firmly established worldwide, SITQ is clearly well positioned to meet the challenges of the future successfully.
