City of design and joie de vivre
Friday, 8:45 a.m. I sit down at my desk, my favourite latte in hand. Before I attack my workload, I go through the day’s agenda in my head. My chair faces a window and the amazing view gives me a sense of peace and calm that helps me put things in perspective.
Tonight, two of my friends will be swinging by my office so we can hit the town. After a cocktail here, in the lounge with the hanging gardens, we’ll try out the new night market across the street. The lineup of eateries there seems out of this world, so I’ve got a “restaurant crawl” in store for the three of us. Seems promising! I hear that later in the evening, the whole spot turns into a nightclub. They’ve got something special planned for the official opening tonight: the DJ roster alone should bring in a good crowd of people.
Looks like the weekend is also jam-packed. Tomorrow, I’ll be picking up my two nieces for a bit of a shopping spree. I thought I’d take them first to the indoor amusement centre. That place is a blast! We always lose all sense of time when we’re there. The girls love to juggle and climb on the unicycle. Then we’ll explore the entertainment and the pop-up stores at the mall. There’s always something in there that gets them excited. The last times we went, we helped colour in a giant mural, enjoyed the mosaicultures and took an augmented reality tour of the Northern Lights. While we were there, we made a donation to a fund-raiser for sick children. We’ll see what tomorrow brings. Plus, it’s perfect timing to help them pick out a Father’s Day gift.
Fine food, great activities, concierge services and cultural events: Visitors to our retail properties, like Vincent and his nieces, can enjoy a full range of experiences that are constantly renewed and refreshed to keep them coming back for more. We pride ourselves on rolling out novel concepts, teaming up with some of the biggest names in global entertainment and redeveloping our spaces to woo and wow our visitors time and time again.
UN Sustainable Development Goals
With 30 million visits per year, the Montreal Eaton Centre is Quebec’s busiest mall. It is currently in the midst of one of the industry’s biggest redevelopment projects. The $200-million investment aims to completely redefine the urban shopping experience. It will incorporate the newest trends in retailing, including a completely reconceptualized gourmet food hall — thus paving the way for new opportunities for vibrant tenants, with direct access and enhanced visibility from the four main arteries that surround the centre.
The year also saw a major step forward in terms of our entertainment offering. Two important announcements helped position us at the forefront of the Canadian market, with two distinctive brands.
Canada’s first Time Out Market will open at the Montreal Eaton Centre in late 2019. Time Out Market, a business division of the renowned Time Out Group, is a wildly successful phenomenon that started in Lisbon, Portugal. After just three years, it became the city’s most popular tourist attraction. It is set to be exported to other markets besides Montreal, namely Boston, Chicago, London, New York and Prague. Time Out Market’s visionary concept brings together the best of the city’s food and cultural offerings under one roof. In Montreal, it will move into a 36,000 ft² (3,300 m²) space featuring 16 dining venues, two bars, a demo kitchen, a cooking academy, a retail shop and a cultural stage that can host all sorts of events and live entertainment.
30 million visits per year
We were also very proud to invest in a partnership with Cirque du Soleil Entertainment Group to launch the first site of CIRQUE DU SOLEIL CREACTIVE, a new family entertainment centre concept. It will make its debut at Vaughan Mills in the Greater Toronto Area. CIRQUE DU SOLEIL CREACTIVE will offer young families a range of acrobatic, artistic and other recreational activities inspired by Cirque du Soleil, such as aerial parkour, as well as wire, mask design, makeup, juggling, circus track activities, dance and more. A Canadian first, CIRQUE DU SOLEIL CREACTIVE is scheduled to open in the fall of 2019 in a 24,000 ft² (2,200 m²) space.
Creating wow-worthy moments, surprising visitors with original activations and transforming their entire experience: these are trends we will continue to build on in the retail sector. As we migrate more and more from a material world to an experiential one, our role is to bring the most promising ideas to retailers and work with them to roll out unforgettable experiences for consumers.
Mr. Sirois has over 25 years of experience in various sectors of the real estate business. He started his career with Ivanhoé Cambridge in 1990 as a Leasing Representative. He was subsequently promoted to Leasing Manager and then later worked in development. Mr. Sirois also served as General Manager of the Galeries Rive Nord shopping centre in Repentigny, Quebec.
In 2005, he was appointed Vice President, Investments, and in 2011, Senior Vice President, Emerging Markets. He then became Senior Vice President, Commercial Investment and Emerging Markets. As such, he was responsible for implementing the Company’s investment strategies in BraziI and China. More recently, he served as Executive Vice President, Shopping Centres, North America, where he was, among other things, responsible for all the Company’s investments and operations in Quebec and oversaw the implementation of construction and development projects. He was appointed in his current role in April 2016.
Before re-joining Ivanhoé Cambridge in 2005, Mr. Sirois held the position of Real Estate Manager, Quebec and Atlantic Regions, at BMO Financial Group. He also previously served as Head of Human Resources, Quebec Division, for the same group.
Claude Sirois has a Bachelor’s Degree in Real Estate from McGill University as well as an MBA from HEC Montréal business school. He is also a member of the Board of Trustees for the International Council of Shopping Centers (ICSC).
The new Le Cathcart Restaurants et Biergarten concept will be coming to Place Ville Marie in Montreal in the year ahead. Open seven days a week, all year round, this new space, to be located under the glass pavilion of the Place Ville Marie Esplanade, will offer seating for more than a thousand people, with some 15 unique counter-style dining concepts, as well as three restaurants with table service. In addition to an impressive selection of local beers and a carefully curated list of cocktails and wines, the concept will draw heavily on the talent of several stars of the Montreal culinary scene. Imagined by Sid Lee Architecture and A5 Hospitality, and realized by the Sid Lee Architecture | Menkès Shooner Dagenais LeTourneux Architectes consortium, Le Cathcart Restaurants et Biergarten is bound to become a destination of choice for happy hour and a night on the town.
Projet Nouveau Centre, our initiative to revitalize downtown Montreal, revolves around Fairmont The Queen Elizabeth, Maison Manuvie, Place Ville Marie and the Montreal Eaton Centre. These four landmark projects, with Place Ville Marie as the epicentre, will be ongoing until 2020. Residents, retailers, professionals and visitors alike will be able to enjoy a new sense of cultural vibrancy and a completely revamped commercial offering. Projet Nouveau Centre represents an investment of more than $1 billion in downtown Montreal.
Innovation isn’t just about technology or artificial intelligence. It can be found in many aspects of our business processes, up to and including our investment approach. It is first and foremost a matter of pinpointing what the user is looking for and doing what we can to anticipate these needs. It’s this capacity to stay one step ahead of the game that ensures we end up in the right market with the right project — making us the envy of our entire industry.
Chief Investment and Innovation Officer
Chief Investment and Innovation Officer
Sylvain Fortier is responsible for developing and executing strategies enabling Ivanhoé Cambridge to provide strong, innovative real estate investment leadership. To that end, he identifies new ideas by focusing on emerging trends, technological advances, innovative designs and needs generated by urbanization or by future users of space. His mandate also includes oversight of global investment funds.
Mr. Fortier sits on the Board of Directors of Otéra Capital, a major commercial mortgage lender, and is also a member of the Board of Directors and Chairman of the Strategy and Investment Committee of Gecina, Europe’s largest office real estate investment trust, in which Ivanhoé Cambridge has a substantial investment.
Mr. Fortier joined Ivanhoé Cambridge’s parent company, the Caisse de dépôt et placement du Québec, in 2004 as Vice President, Asset Management, of Cadim. He was then put in charge of SITQ’s office building portfolio in the United States. In August 2010, he became Ivanhoé Cambridge’s Vice President, Advisory and Real Estate Strategy. In April 2011, he was appointed head of the Company’s newly formed residential business unit, which grew significantly under his leadership.
Mr. Fortier has more than 30 years of experience in real estate investment and financing involving various asset types. He began his career with the mortgage and real estate units of London Life and then joined Standard Life, where his positions included Regional Manager. Over the years, he has acquired a broad range of experience in real estate financing and management.
Mr. Fortier is actively involved in the community and has been a member of the fund-raising committees of The Lighthouse, Children and Families, United Way and the Institute for Research in Immunology and Cancer (IRIC). He sits on the Board of Directors of Théâtre du Nouveau Monde (TNM) and is also a member of the Pension Real Estate Association (PREA) and the National Multifamily Housing Council (NMHC).
Mr. Fortier has a Bachelor of Commerce with a major in Finance and Real Estate from McGill University.
Thousands of people lined up to be the first to experience Premium Outlet Collection Edmonton International Airport in May 2018. This new addition to our Canadian retail portfolio, a result of a joint partnership with Simon, boasts a one-of-a-kind shopping experience, with a unique mix of outlet-type retailers and a first-class range of guest services. The location near the international airport makes it an ideal destination for travellers on a stopover, with a full range of amenities. In addition to DeliverEase parcel shipping service, the centre offers a “stow and go” coat and luggage check for a more pleasant stay. Visitors can get updates on their flight status anywhere in the centre or even print out their boarding pass. They also have access to phone and computer chargers and free Wi-Fi. Shuttle service to and from Edmonton International Airport is complimentary, as are a selection of baby supplies and refreshments. Another unique retail concept at Premium Outlet Collection EIA is SHARE, an innovative market where visitors can enjoy a craft-brewed coffee, sample locally produced foods and browse an arts and crafts market showcasing the work of Alberta artisans.
Many of our shopping centres, including Premium Outlet Collection Edmonton International Airport and Outlet Collection at Niagara, have access to DeliverEase, an international service that lets travellers shop and ship their purchases home without having to worry about them for the rest of their stay or visit to the centre. This unique advantage makes the overall shopping experience much simpler and more enjoyable for all our guests.
We hold our shopping centres to a high standard of quality. These requirements shape our acquisition choices and ensure that we pull out all the stops to maintain this level of excellence. We regularly reinvest in our properties and closely monitor their management to guarantee that the consumer experience is as appealing as possible.
We are continuing to invest $60 million in the redevelopment of Laurier Québec to revamp the common areas and modernize the interior. With 11 million visits every year, these changes will considerably enhance the shopping experience for the centre’s current and future visitors.
All of our visitors have needs and aspirations that are unique to them. The same can be said of the retailers who set up shop at our shopping centres. Connecting with communities and working closely with the brands in our portfolio not only keep us attuned to what our customers are looking for — they also ensure we can provide the best possible service to merchants as they reach out to consumers.
For the first time, we hosted a retail symposium in Toronto. The event brought together executives from key retailers within our centres and featured a series of activities involving industry professionals. This initiative is in keeping with our commitment to share our expertise with our retailers and work closely with them to innovate and offer constantly renewed experiences. To boost customer traffic, our teams come up with events and activations targeting a wide range of market segments, among them pop-up shops, indoor skating rinks, mosaicultures, augmented reality, scenic exhibits and various celebrations — any opportunity to enrich the user experience. We were also proud to acquire new works of art from Priscilla Yu, Paulo Grangeon and Paryse Martin to enhance our shopping centres.
Given the growing popularity of pop-up shops, we have signed agreements with two established platforms, Storefront and Pop-up go, to d evelop our expertise in this sought-after sector and pass along more pop-up opportunities to our retailers.
One of the pop-up shops that was particularly popular during the year was House of Marley at Vaughan Mills, in the Greater Toronto Area. Part store, part experiential activation, the House of Marley pop-up store featured a wide range of superior-quality pioneering products known for their technology and sustainability. The intimate way the brand was showcased made it possible for shoppers to experience the products first-hand and appreciate the quality of their materials and workmanship. House of Marley representatives found that the concept afforded them a new way of sharing their vision and their values with audiophiles.
In January 2018, Place Ville Marie in Montreal launched the artpvm pop-up exhibition. The initiative included a participatory element open to the public, where members of the city’s art community were called on to submit their work to decorate the temporary hoarding at Galerie PVM during its renovations. An open invitation was extended to present original creations related to the theme of escape. No fewer than 200 submissions were reviewed by a panel of judges. The grand prize winner was Montreal artist VNILLA for her whimsical creation Ice cream chariot.
The 21st floor of Place Ville Marie saw the installation of Montreal’s first indoor collaborative and connected urban garden. With a panoramic view of the downtown cityscape, Jardin180 is a whole new kind of community gardening experience. The tenants of the five buildings in the Place Ville Marie complex were encouraged to form teams to tend 50 garden plots between June and December. Each of the plots comprised a mix of five different vegetables, fruits and fine herbs. Participants could track the status of their garden using a collaborative platform that invited them to interact with other teams and engage in a friendly competition. This was a great opportunity for the various occupants of the building to meet with one another while participating in a gardening activity in this brand new space.
A number of new tenants chose our shopping centres to showcase their brands, thereby further broadening our retail mix. Nordstrom Rack opened its first, and highly anticipated, Canadian store at Vaughan Mills in the Greater Toronto Area during the year, while Canada’s fourth UNIQLO celebrated its grand opening at Guildford Town Centre in Surrey. In addition, the upcoming arrival of the celebrated French sporting goods retailer Décathlon at the Montreal Eaton Centre is sure to delight downtown shoppers.
Every year, our shopping centres worldwide are visited by hundreds of millions of people. In 2018, Metropolis at Metrotown in British Columbia became the first of our properties to top the $1-billion mark in sales — a rarity in the Canadian market. This level of excellence is vital in keeping us on top of the latest trends and in tune with the expectations of our guests. It also empowers us to further enrich our expertise and pass this on to our tenants.
At Ivanhoé Cambridge, we decided to do Black Friday our way this year. While the various Black Friday promotional activities were on in our shopping centres, we gave our teams the chance to transform their purchases into an act of kindness. For every dollar spent by an employee at a store in one of our centres, we contributed a gift card in the same amount to a local charity, selected in accordance with our company policies. This initiative, which we refer to as “Black Friday Frenzy: Shopping for a Good Cause!” is yet another way we uphold our corporate social responsibility values while supporting our retail activities.
Urbanization is occurring at a fast pace in the world’s biggest cities, where millennials are spreading their lifestyle and expectations. Our investment strategies, which are focused on creating unforgettable experiences for the users of our spaces, are constantly changing as a result. In an effort to define a sense of community by crafting an urban experience, we have joined forces with the best partners in the world in India, China and Mexico, to name a few, to invest in and develop mixed-use properties that deliver everything people need to live, work and play all within walking distance of their home.
In partnership with Piramal Enterprises Limited, we closed investment deals totalling INR 3.761 M ($71.7 M) in Palava, a mixed-use smart city located in Greater Mumbai.
Palava City covers 4,500 acres (1,821 ha) and is being rolled out in phases. Phase I, which comes in at about 300 acres (121 ha), has already been delivered, Phase II (roughly 700 acres or 283 ha) is currently under development, with a projected saleable area of 57 M ft² (5.3 M m²).
Designed as a walkable city where residents can live, work and play within walking distance, the Palava City project represents an inroad into the country’s mixed-use residential communities where there is a decisive opportunity to improve residents’ quality of life. Palava has already made considerable investments in high-quality sustainable infrastructure.
We co-invested with our partner Chongbang in Lot 18, a strategic parcel of land in the heart of Shanghai. We plan to invest further in this property to create a major 3 M ft² (278,000 m²) mixed-use development, with 1.2 M ft² (109,000 m²) of commercial space, 969,000 ft² (90,000 m²) of Class A office space and a museum. The project also features a large-scale built heritage preservation component, an area the Chongbang teams excel in.
We broke ground on Corporativo Neuchatel, a Class AAA office building in the multipurpose development project known as Cuadrante Neuchatel Polanco. Corporativo Neuchatel will feature 19 storeys, each with a leasable area of 24,100 ft² (2,200 m²). Developed jointly with our partners Hines and MIRA, the building will stand out for its innovative design, owing to its extensive array of spaces for collaborative use, which are conducive to an optimal work environment. The property will feature a top-notch fitness centre, a luxurious hotel-like lobby and co-working spaces. The property is LEED® Gold and pre-certified WELL Building Standard™. The Corporativo Neuchatel construction project will complement the erecting of two 600-unit residential towers spearheaded by MIRA in 2017. The projected completion date for all three projects is 2021.
The multipurpose Cuadrante Neuchatel Polanco will comprise 1,400 residential units, plus 53,800 ft² (5,000 m²) of commercial space and three office towers, not to mention 3.5 acres (1.4 ha) of public space to treat residents, tenants and visitors to lush green zones surrounding restaurants and other commercial venues.