Metropolis at Metrotown in Burnaby, owned by Ivanhoé Cambridge. (Courtesy Ivanhoé Cambridge)

Ivanhoé Cambridge has found a new partner for its Canadian retail operations, announcing Tuesday JLL will take over the operations of the retail portfolio in what the firms call an “agreement to operate retail assets through a unified approach.”

Although Ivanhoé has been actively marketing retail assets for an extended time, this is not a sale transaction. There is no equity commitment from JLL, an Ivanhoé Cambridge spokeswoman confirmed.

However, the company does say the “vast majority” of its retail employees will join JLL Canada. It also says the management team and “key decision-making roles” will remain in Montreal.

According to its website, Ivanhoé Cambridge currently operates 24 retail properties across Canada, including some of the country’s best-known shopping centres such as the Montreal Eaton Centre, Metropolis at Metrotown in Greater Vancouver, and the Vaughan Mills complex in Vaughan in the Greater Toronto Area.

The portfolio comprises about 21 million square feet and includes properties in British Columbia, Alberta, Ontario, Quebec, Manitoba and and Nova Scotia.

As part of the new alliance, JLL also plans to open an office in Québec City.

The transition will take effect on Oct. 1.

“We are excited to bring a globally renowned company to deepen its footprint and investments in Quebec,” said Nathalie Palladitcheff, president and CEO of Ivanhoé Cambridge, in the announcement. “To focus on our core business as a seasoned, clear-sighted real estate investor and to align and standardize our business model globally, we wanted to find a partner with the scale, track record and expertise to continue the optimization of our assets’ performance and lead the industry in defining the future of the retail sector, thus creating long-term value for our depositors.

“JLL’s global reputation and like-minded culture will continue to support us, while creating career opportunities for our retail teams joining the JLL family.”

JLL is currently the largest third-party retail property management company in North America.

JLL, Ivanhoé plan sustainable initiative

The firms say they “share a progressive management philosophy built on driving sustainable real estate goals” and plan to continue efforts to improve energy efficiency and asset resilience thus supporting Ivanhoé Cambridge’s goal of achieving net zero carbon by 2040.

“Retail has been going through a transition period over the last decade plus, where the focus has become on creating sustainable and dynamic experiential settings that engage and excite the communities it serves – and the pandemic has acted as a major accelerant on those trends,” said Greg Maloney, CEO, JLL Americas Retail, in the announcement. “Retail is our division’s sole focus and we are thrilled to expand our expertise and footprint in Canada, and Quebec, establishing JLL as the largest third-party retail manager in Canada as well.”

JLL and Ivanhoé Cambridge to develop a Centre of Excellence for Sustainability (COES) in Quebec to accelerate the transition to sustainable and inclusive real estate.

“Through this alliance, we are expanding our presence in Quebec, a strategic market for the growth of JLL given the dynamism of its real estate sector and of its various industries contributing to the Canadian economy,” said Alan MacKenzie, the CEO of JLL Canada, in the release. “We also look forward to collaborating with Ivanhoé Cambridge to shape growth opportunities, transform through technology and build strong communities in Canada through the COES.

“I’m most importantly looking forward to tapping into the Ivanhoé Cambridge retail team’s deep knowledge of the local retail market to combine efforts and increase the value of the Ivanhoé Cambridge properties, benefitting retailers, their customers and our environment.”

About JLL Retail and JLL

JLL Retail has more than 2,000 centres totalling 186 million square feet under management, for lease and sale. It employs over 215 retail brokerage experts spanning 47 markets in the U.S. and Canada, supporting more than 2,100 clients.

JLL is a professional services firm that specializes in real estate and investment management. The Fortune 500 company reported annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

About Ivanhoé Cambridge

Ivanhoé Cambridge develops and invests in real estate properties, projects and companies around the world. It invests internationally alongside strategic partners and major real estate funds.

Through subsidiaries and partnerships, the company holds interests in more than 1,100 buildings, primarily in the industrial and logistics, office, residential and retail sectors. Ivanhoé Cambridge held $60.4 billion in real estate assets as at Dec. 31, 2020, and is a real estate subsidiary of the Caisse de dépôt et placement du Québec, a global investment group.