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Quebec’s public pension supervisor plans to chop a big variety of jobs within the real-estate subsidiaries it’s within the strategy of merging.
“It’s inevitable that there will probably be job losses” in actual property, Caisse de dépôt et placement du Québec chief government Charles Emond advised reporters Thursday after CDPQ reported its 2023 outcomes.
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The combination drive, which ought to be accomplished by the top of 2025, is anticipated to generate annual financial savings of about $100 million from processes, assets and programs. Nathalie Palladitcheff, the Caisse’s high real-estate government, will go away CDPQ on the finish of the transition interval.
“Are we speaking about dozens of job cuts? No. We’re speaking about one thing that’s extra substantial,” Emond stated Thursday. “The $100-million determine received’t all come from job reductions, however it’s going to in all probability be crucial issue. It’s about maximizing our efficiency for our depositors, at higher price.”
Emond declined to provide specifics on the magnitude of the cutbacks as a result of the restructuring course of is ongoing.
Ivanhoé Cambridge has about 490 workers, in contrast with about 185 for Otéra Capital, a Caisse spokesperson stated Thursday.
Actual property was the worst performing of the Caisse’s main asset courses in 2023, posting a detrimental return of 6.2 per cent, in accordance with a press release issued Thursday. CDPQ’s general return was 7.2 per cent.
The restructuring has nothing to do with the present financial downturn, Emond stated.
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“This isn’t linked to the financial context in any respect,” he stated. “That is strategic. There will probably be a higher potential because of this course of.”
Folding Ivanhoé Cambridge and Otéra right into a single entity will relieve some Caisse executives from their present obligation of sitting on two separate boards or administration committees, Emond stated. Information assortment is at the moment lower than optimum as a result of every unit makes use of totally different programs, he added.
“It’s about releasing up hours and specializing in important issues,” the CEO stated. “We’re not doing this primarily for prices. Actual property is a individuals enterprise. We will probably be much less tied up in governance issues.”
CDPQ will purchase all of the pursuits held by minority shareholders within the share capital of Ivanhoé Cambridge and Otéra Capital as a part of the restructuring — thereby changing into the only real shareholder. Minority buyers at the moment personal about three per cent of every real-estate unit, Emond stated.
“I need to be very clear. We’re not dismantling Ivanhoe Cambridge or Otéra Capital,” he stated. “These are organizations which have a great model.”
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