Hazelview Investments is a global alternative investment manager focused on real estate and has been for over 20 years. We maximize returns for investors by employing a value-oriented investment philosophy combined with an active man­agement style to identify assets that will generate predictable cash flow over the long term. We have earned a reputation for providing conservatively managed, risk-averse investment opportunities for institutions, trusts and endowment funds, discretionary investment advisers and qualified individuals.

Our core competency is our ability to accurately value cash-flowing assets based on a comprehensive analysis of the quality and sustainability of their current and future revenue streams. This fundamental knowledge of bricks-and-mortar investing is critical to identifying high-quality real estate investment opportunities. Hazelview’s global real estate investment platform currently manages over C$10.4B* in both private and public real estate equity and debt in North America, Europe and Asia-Pacific. Investment structures include core, value-add and opportunistic strategies that are offered through separate accounts and com­mingled private and public funds. Hazelview is headquartered in Toronto with offices in New York, Hamburg and Hong Kong.

* As of September 2021.

Sector forecasts

INDUSTRIAL: The industrial sector continues to benefit from the secular trends in e-commerce, which have strengthened even further with the onset of COVID-19 and the global shift to online ordering and delivery of everyday goods. The disruption to global supply chains that occurred over the past 2 years will likely lead to a shift away from just-in-time strategies towards a more defensive stance that will emphasize safety stock, leading to greater demand for space to warehouse excess inventory. We see a long runway for continued rental rate growth as rent comprises a nominal slice of tenants’ overall cost structure and is far outweighed by the benefit of locating as close as possible to end users.

OFFICE: We expect the office sector to remain challenged for some time as many urban and suburban markets are grappling with the twin challenges of elevated supply and reduced demand. Availability rates in many urban metro markets are at or near all-time highs as tenants are electing to put their space on the market for sublease or walk away from their leases entirely, while demand remains sluggish due to the growing propensity for hybrid and remote work. The normalization of a hybrid work environment should lead to reduced long-term demand for office space, despite the impacts of de-densification.

RESIDENTIAL: Residential REITs will continue to push rents and capture significant embedded rent growth as the industry benefits from elevated occupancy levels, manageable new supply, and rising wages. Apartment fundamentals have improved much faster than expected and are well placed to remain beneficiaries of the economic recovery and resurgence in housing demand as home prices continue to soar and cities reopen. Single family rental should continue to see healthy pricing power over the next few years as they benefit from a robust demographic tailwind and spike in the cost of homeownership. Manufactured housing will continue to benefit from the demand for affordable housing while the pandemic has increased interest in the outdoors and has supported outsized demand for RV- and marina-based activities.

RETAIL: We are positive on the U.S. retail real estate sector. Over the past 12 months, demand for space has come roaring back aided by the widespread distribution of vaccines which has allowed federal and local governments to relax mobility restrictions. As a result, sales and foot traffic are at or exceeding pre-pandemic levels. Consumer net worth’s and savings rates are also at all-time highs, providing households with significant amounts of disposable income to spend on goods. Retailers are looking to take advantage of vacancy in the market by opening new stores and for the first time in more than five years exploring new concepts. As a result, leasing volumes are accelerating, resulting in a quicker than expected recovery in occupancy rates. We believe back-to-school and holiday shopping seasons could be one of the biggest ever, serving as a positive catalyst heading into the fall. Finally, the performance of grocery stores and necessity-based retailers proved very resilient during the pandemic, causing landlords to value these tenants more highly when considering space decisions. 

OTHER: Public REITs offer investors the ability to invest in unique property types that are hard-to-do-so through the private market. We believe that in the near term, life sciences, education-focused facilities, cold-storage assets and casinos will offer attractive secular growth.

  • Life sciences are at the leading edge of technology and biology;
  • Education facilities offer attractive internal growth;
  • Cold storage assets play a critical role in the world’s supply food chain
  • Casinos are an emerging institutional property type offering attractive returns, supported by a steady customer base. 

Investment principles & strategy

Hazelview focuses on identifying and valuing real estate investment oppor­tunities on a risk-adjusted basis. We source investment opportunities across the capital stack and access stable, inflation-hedged cash flow by investing in real estate both privately and publicly that own investment-grade real estate. Over the past 20 years we have built a full-service, active management platform with capabilities that stretch across the entire spectrum of real estate, investing privately and publicly in equity and debt. Our experienced team of real estate professionals are strategically located in key global markets including Canada, the United States, Europe and Asia, providing us with a deep understanding of local dynamics and enabling us to accurately and efficiently source, underwrite and monitor global real estate investments.

Private Real Estate Investments: Hazelview offers exposure to multi-residential and commercial real estate through direct investments under core, value-add and opportunistic strategies.  With over 20 years of real estate investment experience, we have a proven track record for executing; and our success in doing so is supported through a fully integrated investment, development and property management platform. 

Public Real Estate Investments: Hazelview offers global real estate exposure through investments in public equity and debt securities. Our global securi­ties platform allows us to create tailored solutions for investors seeking global real estate exposure and to provide investment strategies that can efficiently capitalise on mispricing in different global markets. We employ the same bot­tom-up approach we take to real estate investments when investing in public securities, which is to underwrite the assets directly, but primarily access the bricks-and-mortar through publicly listed real estate securities.

Four Quadrant Global Real Estate Partners: (“the Four Quadrant Fund”) is specifically designed to combine Hazelview’s various investment strategies into one globally diversified integrated real estate investment solution. The Four Quadrant Fund offers access to real estate private equity investments, while providing income and liquidity. By investing both publicly and privately in real estate debt and equity, the Four Quadrant Fund is designed to minimize volatility, while maximizing the total return for investors.

Performance verification

Hazelview Securities Inc. (“HSI”), a subsidiary of Hazelview Investments, is the manager of Hazelview’s global real estate securities strategies. HSI claims compliance with the Global Investment Per­formance Standards (GIPS®). To receive a list of composite descriptions and/ or presentation that complies with GIPS standards, contact HSI at info@hazelview.com.

COMPLIANCE STATEMENT

This information is provided for use by qualified accredited investors for informational purposes only. It is not intended for, and should not be distributed to, or relied upon by, the public. Information described herein reflects the views of Hazelview Securities Inc. as of the date hereof. No representation or warranty is made concerning the accuracy of any information provided herein and there can be no guarantee that any forecast or opinion set out in these materials will be realized. This is not investment advice and may not be construed as investment, legal or tax advice, or as sales or marketing material for any financial product or service sponsored or provided by Hazelview Investments Inc. or any of its affiliates or agents.