PERE: Inside Toronto Transit’s real estate portfolio overhaul
The Toronto Transit Commission Pension Plan (TTCPP) is undergoing a strategic shift in its real estate portfolio management. Historically, the pension fund held 80% of its real estate investments directly, but Chief Investment Officer Andrew Greene aims to reverse that ratio, increasing exposure to real estate funds. TTCPP recently hired BGO to manage its existing Canadian property portfolio and assist in expanding its real estate footprint globally, particularly in the U.S. and Europe. This transition is driven by a desire to diversify assets, leverage external expertise, and access a broader range of investment opportunities.
To facilitate this transformation, TTCPP has been making selective fund commitments, including a €50 million investment in Henderson Park’s Real Estate Fund II. The pension fund is also looking to divest some of its existing properties to free up liquidity for new investments. Greene acknowledges that while current market valuations are low, the fund is willing to make strategic sales at reasonable prices to capitalize on emerging opportunities. With a 12% target allocation to real estate, TTCPP is balancing its portfolio between direct holdings, fund commitments, and infrastructure investments, positioning itself for long-term growth.
