“We wanted to create an investment [vehicle] that could transform the way that retrofits are financed. Rather than look at it as a pure real estate play, look at it as an energy or ESG investment [in and] of itself”
Frederic Bettez,
Canada Infrastructure Bank
“Investors … [are] realizing that they need to be prepared for and influence the sorts of beta risk that we don't really talk about much in traditional modern portfolio theory and finance”
Lindsey Walton, Principles for Responsible Investment
“We have to look beyond just profitability when it comes to running our business. Sustainability issues and social impact need to be at the forefront of the decisions that we make for now and for the future”
Jason Jogia,
Avenue Living Asset Management
“[Responsible investing] didn't exist 20 years ago, and it's become more prevalent. It's definitely part of the world of investing, and will be here forever”
Robert Janson,
Westcourt Capital
In Partnership with
Breathing new life into Canada’s housing supply
Amid a growing wave of responsible investing, strategic partnership between Avenue Living and CIB paves the way for a greener, more sustainable future for investors and residents
Read on
Frederic Bettez
Canada Infrastructure Bank
Jason Jogia
Avenue Living
Lindsey Walton
Principles for Responsible Investment
Robert Janson
Westcourt Capital
Industry experts
AS A responsible private real estate investment manager, Avenue Living has long placed ESG at the forefront of its decisions and operations.
With its focus on operating and maintaining workforce housing, as well as oversight through its flagship investment vehicle, the Avenue Living Real Estate Core Trust, the organization is no stranger to the social and governance piece of the puzzle. But several years ago, the firm saw an opportunity to go farther in its commitment to responsible stewardship.
“It was the environmental impact [aspect] where we wanted to find a way to do something sustainable and feasible,” Jason Jogia, chief investment officer of Avenue Living Asset Management, said in a recent round table session.
In the wide-ranging conversation, Jogia and a panel of other experts discussed responsible investing, Avenue Living’s ongoing deep energy retrofit partnership with the Canada Infrastructure Bank (CIB), and how the collaboration is generating an innovative model to benefit both investors and residents.
Under its Green Infrastructure priority sector, CIB’s Building Retrofits Initiative (BRI) provides financing for energy retrofit projects. The initiative invests in the decarbonization of buildings and provides attractive financing to reduce investment barriers and drive carbon savings.
“Being a Crown corporation, we are in many ways the ultimate impact investor,” said CIB managing director for investments Frederic Bettez. “We can invest with the objective of reaching outcomes and the public good ahead of reaching financial returns, and so we tend to design our initiatives in line with what we might call ESG principles.”
A growing ESG chorus
To cement its commitment to sustainability, Avenue Living became a signatory to the UN-supported Principles of Responsible Investment (PRI) in 2021. A non-profit organization with more than 5,000 signatories representing over US$120 trillion in assets globally, the PRI is widely recognized as the world’s leading proponent of responsible investment.
“We work to understand the investment implications of ESG factors,” said Lindsey Walton, the PRI’s director of Americas, signatory relations. “We also work to support our international network of investor signatories in incorporating these factors into their investment and ownership decisions.”
The PRI was founded according to six core principles developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system. That’s an objective with which the CIB also seeks to align as it pursues investments in line with the policies of the government of Canada.
Robert Janson, co-CEO and chief investment officer at Westcourt Capital, noted that the idea of responsible investment has caught fire across the world. While institutional and high-net-worth investors might have previously thought of ESG as a nice-to-have, they're now increasingly asking questions about their asset managers’ participation in commitments like the PRI.
“[If managers] flippantly signed on in the beginning and then [didn’t think about it afterward], that would be revealed pretty quickly,” Janson said. “That itself would be a due diligence flag, which is arguably less about investing to make money than it is about the character of the people you're working with.
“[Responsible investing] didn't exist 20 years ago, and it's
become more prevalent,” he said. “It's definitely part of the world of investing, and will be here forever.”
“We have to look beyond just profitability when it comes to running our business,” Jogia added. “Sustainability issues and social impact need to be at the forefront of the decisions that we make for now and for the future.”
Transforming the market
Among many other investments, Bettez says the CIB aims to encourage deep retrofits that will result in GHG emission reductions and improved energy efficiency within existing buildings – something in which Avenue Living is keenly interested.
“The bulk of [our existing rental stock] was built in yesteryear [pre-2000]. Environmental impact was not at the forefront of investors’ sentiment or builders’ sentiment,” Jogia explained. “As a result, the [carbon] footprint of those buildings is actually pretty sizable relative to what today's modern build form can emit.”
“We wanted to create an investment to transform the way that retrofits are financed,” Bettez said. “Rather than look at it as a pure real estate play, look at it as an energy or ESG investment [in and] of itself so that you can eventually create an asset class that can become investable.”
When Avenue Living approached the CIB to propose a partnership, it was a moment of serendipity. Avenue Living wanted to make capital investments that would help reduce GHG emissions within its multi-family residential assets while extending their useful life. Meanwhile, CIB saw a chance to extend its impact from commercial buildings mostly within larger urban areas to include multi-family residential assets in the prairies. The resulting partnership is CIB’s largest investment in this sector in western Canada to date.
“We want to make sure we invest across the country in different sectors,” Bettez says. “A lot of people don't think it can be done ... [therefore] we need companies like Avenue Living to show the way.”
Investing for the future
While the investment industry has historically considered doing good and doing well with their portfolios to be at odds, that view is evolving. As Walton noted, academic studies have shown that considering inequality, climate change, and other systemic risks in the investment process can contribute to better return performance.
“Investors are incorporating ESG into their investment decisions and their ongoing stewardship of their investments,” she said. “[They are] realizing that they need to be prepared for and influence the sorts of beta risk that we don't really talk about
“There are certain build forms where it just will not allow it from a financial feasibility standpoint under today's technology. That could change as time goes on,” Jogia said. “But it would be our objective to do [retrofits for] a majority of our assets in Canada.”
The UN PRI’s six founding principles
Avenue Living Asset Management, which operates as part of the Avenue Living Group, is a leading Canadian alternative asset manager. With a shelf of four alternative investment products as of 2022, Avenue Living entities own and operate assets throughout Canada and the United States that support sectors essential to the everyday lives of North Americans: workforce housing, commercial real estate, farmland, and self-storage. Through a disciplined, diversified, and analytical approach, Avenue Living executes its investment strategies with an eye toward creating long-term value for investors as well as the communities where it operates.
Find out more
In his capacity as managing director, investments with the CIB, Frederic Bettez is responsible for leading the Commercial Building Retrofits Initiative and investments in broadband, and for overseeing the activities of the CIB in Quebec.
Before joining the CIB, Frederic focused on the financing, acquisition, and management of infrastructure and energy projects on sizable projects across Canada.
Frederic has led teams involved in setting up consortiums; negotiating and structuring various design, build, finance, operate, and maintain (DBFOM) projects; developing financial models; and managing the financing of infrastructure and renewable energy projects that generated billions of dollars in financial commitments.
managing director, investments, Canada Infrastructure Bank
Frederic Bettez
Jason Jogia serves as the chief investment officer of Avenue Living, one of the largest private real estate owners and operators in North America, as well as CEO of the organization's Opportunity Trust. He has over 15 years of experience in real estate capital markets and has originated over $10 billion in real estate loans and $1 billion in equity. Jason earned his master’s of corporate finance from SDA Bocconi in Milan, Italy, and an MBA from the Haskayne School of business, where he also instructs in real estate finance and development. Jason is now pursuing his doctorate in business administration.
chief investment officer, Avenue Living, and chief executive officer, Opportunity Trust
Jason Jogia
Lindsey Walton currently works at the UN’s Principles for Responsible Investment (PRI) as their director of Americas. The PRI aims to bring responsible investors together to work toward sustainable markets that contribute to a more prosperous world for all. Before the PRI, Walton worked to accelerate gender equity in the Canadian finance industry as a director at Women in Capital Markets (WCM). Prior to WCM, Lindsey worked in the capital markets space for over a decade. She got her start in venture capital and has spent the majority of her career with CIBC Capital Markets Risk Management (CMRM) doing trading-floor market risk for a variety of different asset classes. Lindsey is on the board of Nellie’s Women’s Shelter and volunteers in WCM’s professional and student mentorship programs.
director of Americas, signatory relations, Principles for Responsible Investment
Lindsey Walton
Robert Janson brings over 20 years of experience, gained in Canada and internationally, to his role as co-CEO and chief investment officer of Westcourt Capital Corporation. An expert in his field, Robert served as a high-net-worth and ultra-high-net-worth advisor for UBS in Switzerland. Since joining Westcourt as a partner in 2013, he has served as a member of Westcourt’s executive and investment committees; he is currently a registered portfolio manager in four provinces. Robert has also spent time instructing in financial planning for the École Supérieure de Banque et Finance in Switzerland, and in Concordia University’s John Molson Wealth Program.
co-CEO, chief investment officer, Westcourt Capital
Robert Janson
“We wanted to create an investment [vehicle] that could transform the way that retrofits are financed. Rather than look at it as a pure real estate play, look at it as an energy or ESG investment [in and] of itself”
Frederic Bettez,
Canada Infrastructure Bank
“We have to look beyond just profitability when it comes to running our business. Sustainability issues and social impact need to be at the forefront of the decisions that we make for now and for the future”
Jason Jogia,
Avenue Living Asset Management
In Partnership with
Breathing new life into Canada’s housing supply
Amid a growing wave of responsible investing, strategic partnership between Avenue Living and CIB paves the way for a greener, more sustainable future for investors and residents
Read on
Robert Janson
Westcourt Capital
Lindsey Walton
Principles for Responsible Investment
Jason Jogia
Avenue Living
Frederic Bettez
Canada Infrastructure Bank
Industry experts
AS A responsible private real estate investment manager, Avenue Living has long placed ESG at the forefront of its decisions and operations.
With its focus on operating and maintaining workforce housing, as well as oversight through its flagship investment vehicle, the Avenue Living Real Estate Core Trust, the organization is no stranger to the social and governance piece of the puzzle. But several years ago, the firm saw an opportunity to go farther in its commitment to responsible stewardship.
“It was the environmental impact [aspect] where we wanted to find a way to do something sustainable and feasible,” Jason Jogia, chief investment officer of Avenue Living Asset Management, said in a recent round table session.
The PRI was founded according to six core principles developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system. That’s an objective with which the CIB also seeks to align as it pursues investments in line with the policies of the government of Canada.
Under its Green Infrastructure priority sector, CIB’s Building Retrofits Initiative (BRI) provides financing for energy retrofit projects. The initiative invests in the decarbonization of buildings and provides attractive financing to reduce investment barriers and drive carbon savings.
“Being a Crown corporation, we are in many ways the ultimate impact investor,” said CIB managing director for investments Frederic Bettez. “We can invest with the objective of reaching outcomes and the public good ahead of reaching financial returns, and so we tend to design our initiatives in line with what we might call ESG principles.”
In January, MPA held a roundtable discussion with four customer-owned banks: Heritage Bank, Beyond Bank, Teachers Mutual Bank Limited and Bank Australia. We were also joined by two brokers who use mutual banks for their clients’ business: Christopher Lee and David Merison.
As brokers such as these struggle with the greater scrutiny that has following the royal commission, customer-owned banks are stepping up to the plate, providing a service that highlights the value of human interaction. With questions around living expenses forcing a heavier workload on brokers, this personal touch can be vital.
During the roundtable, which took place at Otto restaurant in Sydney, the group discussed the unique value proposition that customer-owned banks offer, particularly with the lack of shareholders they have to cater for. While other
“The value proposition that mutual banks provide is getting some more attention,” he said. “We’ve known for a long time that the customer satisfaction that members get through mutual organisations is very high compared to the major banks. I think we’ve struggled to convert that into member growth, but more recently, with it being so front of mind with customers, it’s definitely starting to grow.”
Growth in the sector is giving the mutual banks their “time to shine”, said Beyond Bank head of third party Darren McLeod, adding that they had worked hard over the last two years on selling their proposition.
Referring to the previous year’s roundtable, when the catchphrase of the day was that the customer-owned banking sector was the industry’s “best-kept secret”, McLeod said, “I think that secret is finally getting out.”
“I don’t think we’re doing anything different,” he added. “We’re doing what we’ve always done, but there’s more customer uptake because the market’s in a place where people are now looking, and they’re willing to try it.”
Agreeing that the royal commission had had an effect on consumers heading to the mutual banks, Mark Middleton, head of third party at Teachers Mutual, said there was a growing groundswell. Not only were borrowers looking for alternative options but aggregators were adding more choice to their panels, he said.
Offering a different perspective, Middleton said consumers were becoming more aware of responsible lending and social responsibilities and asking about things like climate change. Teachers Mutual is not only carbon neutral but gives back around 6.8% of its net profits to community grants and other projects.
“It’s particularly topical right now, with the bushfires happening around the country, that people will start looking for who is doing things to make a difference, not just for this generation but future generations,” Middleton said.
“I think we’ve been actually ahead of the curve; no one’s been really aware of it, but the last 12 months it’s become more prevalent.”
Middleton also talked about the wider recognition the sector was receiving, as reflected in its high NPS scores.
“From all the mutuals around the table here, clearly when customers are being recommended by brokers to come to us, they’re voting with their feet,” he said.
McLeod agreed that a lot of the growth was coming out of the third party space.
“We’ve all been working hard in the broker space over the last couple of years as more brokers use customer-owned banks,” he said. “I think the growth is definitely in the broker channel and the work all of us have been doing in the business. The growth we’re talking about is definitely coming from brokers.”
Brokers have also been an important factor for Bank Australia. Senior relationship manager Fernando Lemos said the bank had been bolstering its support around the third party distribution space. He added that it was not only about diversification of products but also diversification of lenders, and this helped brokers cater for a wider client base.
“I think brokers are really starting to become aware of what we’re about and what we stand for,” Lemos said.
“There’s a marketing edge as well: they can go out there and promote themselves. They’re not just a line to a particular organisation; they can look after certain types of clients.”
Agreeing, McLeod added that the extra regulation, such as the caps on interest-only lending, had also had an effect on the sector.
“We all had to slow down for the caps,” he said. “But when it opened up, the brokers who used four lenders were now using a lot more, so it really gave us a chance because we’re in that larger group. So it’s really opened up the market, because it was so confusing in terms of who was doing what – who’s doing construction, who’s doing interest-only, who’s doing investment – so it’s opened up the market and it gives us a shot at getting the business."
One of two brokers joining the roundtable, David Merison from Vault Plus Mortgage and Finance Consultancy said the demographic of people looking to borrow money wanted choice, rather than relying on those who came straight out of the banks and were simply agents for those lender
“We’ve got to hold ourselves open and come up with some innovative solutions, and that means introducing some lenders they wouldn’t always think of,” he said.
Finsure Finance and Insurance broker Christopher Lee said his primary objective was to put the largest amount of money in his client’s pocket rather than the bank’s pocket, and the mutuals offered a cheaper alternative, as well as a more diverse product range.
Not just that but Lee simply enjoys dealing with the mutuals more.
While climate change is a top-of-mind topic for today’s investors, it’s not the only risk energy retrofits in real estate can address. In places where cold winters are a reality, like the prairies, future innovation in energy-efficient solutions can prove to be life-changing for residents as well.
“Deep energy retrofits in the residential real estate space can also result in lower operating costs and reduced mobilization expenses,” Bettez said. He also highlighted other potential co-benefits, such as decreased tenant turnover due to the improvement to people’s quality of life, which could translate into the increased value of building assets down the road.
Avenue Living’s partnership with the CIB is still in its early stages, but it is already taking shape as a potential model for the future of residential real estate. Jogia highlights the firm’s successful pilot of energy retrofits two years ago for its buildings, whose build form reflects “the bulk of multi-family as we know it today.”
Avenue Living has also worked with the CIB to finance feasibility studies around energy retrofits, which showed how buildings erected in the twentieth century could be modified into more environmentally friendly and energy-efficient assets that can last another 50 years.
“There are certain build forms where it just will not allow it from a financial feasibility standpoint under today's technology. That could change as time goes on,” Jogia said. “But it would be our objective to do [retrofits for] a majority of our assets in Canada.”
Avenue Living Asset Management, which operates as part of the Avenue Living Group, is a leading Canadian alternative asset manager. With a shelf of four alternative investment products as of 2022, Avenue Living entities own and operate assets throughout Canada and the United States that support sectors essential to the everyday lives of North Americans: workforce housing, commercial real estate, farmland, and self-storage. Through a disciplined, diversified, and analytical approach, Avenue Living executes its investment strategies with an eye toward creating long-term value for investors as well as the communities where it operates.
Find out more
In his capacity as managing director, investments with the CIB, Frederic Bettez is responsible for leading the Commercial Building Retrofits Initiative and investments in broadband, and for overseeing the activities of the CIB in Quebec.
Before joining the CIB, Frederic focused on the financing, acquisition, and management of infrastructure and energy projects on sizable projects across Canada.
Frederic has led teams involved in setting up consortiums; negotiating and structuring various design, build, finance, operate, and maintain (DBFOM) projects; developing financial models; and managing the financing of infrastructure and renewable energy projects that generated billions of dollars in financial commitments.
managing director, investments, Canada Infrastructure Bank
Fernando Lemos
Jason Jogia serves as the chief investment officer of Avenue Living, one of the largest private real estate owners and operators in North America, as well as CEO of the organization's Opportunity Trust. He has over 15 years of experience in real estate capital markets and has originated over $10 billion in real estate loans and $1 billion in equity. Jason earned his master’s of corporate finance from SDA Bocconi in Milan, Italy, and an MBA from the Haskayne School of business, where he also instructs in real estate finance and development. Jason is now pursuing his doctorate in business administration.
chief investment officer, Avenue Living, and chief executive officer, Opportunity Trust
Jason Jogia
Lindsey Walton currently works at the UN’s Principles for Responsible Investment (PRI) as their director of Americas. The PRI aims to bring responsible investors together to work toward sustainable markets that contribute to a more prosperous world for all. Before the PRI, Walton worked to accelerate gender equity in the Canadian finance industry as a director at Women in Capital Markets (WCM). Prior to WCM, Lindsey worked in the capital markets space for over a decade. She got her start in venture capital and has spent the majority of her career with CIBC Capital Markets Risk Management (CMRM) doing trading-floor market risk for a variety of different asset classes. Lindsey is on the board of Nellie’s Women’s Shelter and volunteers in WCM’s professional and student mentorship programs.
director of Americas, signatory relations, Principles for Responsible Investment
Lindsey Walton
Robert Janson brings over 20 years of experience, gained in Canada and internationally, to his role as co-CEO and chief investment officer of Westcourt Capital Corporation. An expert in his field, Robert served as a high-net-worth and ultra-high-net-worth advisor for UBS in Switzerland. Since joining Westcourt as a partner in 2013, he has served as a member of Westcourt’s executive and investment committees; he is currently a registered portfolio manager in four provinces. Robert has also spent time instructing in financial planning for the École Supérieure de Banque et Finance in Switzerland, and in Concordia University’s John Molson Wealth Program.
co-CEO, chief investment officer, Westcourt Capital
Robert Janson
“We wanted to create an investment [vehicle] that could transform the way that retrofits are financed. Rather than look at it as a pure real estate play, look at it as an energy or ESG investment [in and] of itself”
Frederic Bettez, Canada Infrastructure Bank
“We have to look beyond just profitability when it comes to running our business. Sustainability issues and social impact need to be at the forefront of the decisions that we make for now and for the future”
Jason Jogia,
Avenue Living Asset Management
In Partnership with
Breathing new life into Canada’s housing supply
Amid a growing wave of responsible investing, strategic partnership between Avenue Living and CIB paves the way for a greener, more sustainable future for investors and residents
Read on
Robert Janson
Westcourt Capital
Lindsey Walton
Principles for Responsible Investment
Jason Jogia
Avenue Living
Frederic Bettez
Canada Infrastructure Bank
Industry experts
AS A responsible private real estate investment manager, Avenue Living has long placed ESG at the forefront of its decisions and operations.
With its focus on operating and maintaining workforce housing, as well as oversight through its flagship investment vehicle, the Avenue Living Real Estate Core Trust, the organization is no stranger to the social and governance piece of the puzzle. But several years ago, the firm saw an opportunity to go farther in its commitment to responsible stewardship.
“It was the environmental impact [aspect] where we wanted to find a way to do something sustainable and feasible,” Jason Jogia, chief investment officer of Avenue Living Asset Management, said in a recent round table session.
In the wide-ranging conversation, Jogia and a panel of other experts discussed responsible investing, Avenue Living’s ongoing deep energy retrofit partnership with the Canada Infrastructure Bank (CIB), and how the collaboration is generating an innovative model to benefit both investors and residents.
Under its Green Infrastructure priority sector, CIB’s Building Retrofits Initiative (BRI) provides financing for energy retrofit projects. The initiative invests in the decarbonization of buildings and provides attractive financing to reduce investment barriers and drive carbon savings.
“Being a Crown corporation, we are in many ways the ultimate impact investor,” said CIB managing director for investments Frederic Bettez. “We can invest with the objective of reaching outcomes and the public good ahead of reaching financial returns, and so we tend to design our initiatives in line with what we might call ESG principles.”
In January, MPA held a roundtable discussion with four customer-owned banks: Heritage Bank, Beyond Bank, Teachers Mutual Bank Limited and Bank Australia. We were also joined by two brokers who use mutual banks for their clients’ business: Christopher Lee and David Merison.
As brokers such as these struggle with the greater scrutiny that has following the royal commission, customer-owned banks are stepping up to the plate, providing a service that highlights the value of human interaction. With questions around living expenses forcing a heavier workload on brokers, this personal touch can be vital.
During the roundtable, which took place at Otto restaurant in Sydney, the group discussed the unique value proposition that customer-owned banks offer, particularly with the lack of shareholders they have to cater for. While other
“The value proposition that mutual banks provide is getting some more attention,” he said. “We’ve known for a long time that the customer satisfaction that members get through mutual organisations is very high compared to the major banks. I think we’ve struggled to convert that into member growth, but more recently, with it being so front of mind with customers, it’s definitely starting to grow.”
Growth in the sector is giving the mutual banks their “time to shine”, said Beyond Bank head of third party Darren McLeod, adding that they had worked hard over the last two years on selling their proposition.
Referring to the previous year’s roundtable, when the catchphrase of the day was that the customer-owned banking sector was the industry’s “best-kept secret”, McLeod said, “I think that secret is finally getting out.”
“I don’t think we’re doing anything different,” he added. “We’re doing what we’ve always done, but there’s more customer uptake because the market’s in a place where people are now looking, and they’re willing to try it.”
Agreeing that the royal commission had had an effect on consumers heading to the mutual banks, Mark Middleton, head of third party at Teachers Mutual, said there was a growing groundswell. Not only were borrowers looking for alternative options but aggregators were adding more choice to their panels, he said.
Offering a different perspective, Middleton said consumers were becoming more aware of responsible lending and social responsibilities and asking about things like climate change. Teachers Mutual is not only carbon neutral but gives back around 6.8% of its net profits to community grants and other projects.
“It’s particularly topical right now, with the bushfires happening around the country, that people will start looking for who is doing things to make a difference, not just for this generation but future generations,” Middleton said.
“I think we’ve been actually ahead of the curve; no one’s been really aware of it, but the last 12 months it’s become more prevalent.”
Middleton also talked about the wider recognition the sector was receiving, as reflected in its high NPS scores.
“From all the mutuals around the table here, clearly when customers are being recommended by brokers to come to us, they’re voting with their feet,” he said.
McLeod agreed that a lot of the growth was coming out of the third party space.
“We’ve all been working hard in the broker space over the last couple of years as more brokers use customer-owned banks,” he said. “I think the growth is definitely in the broker channel and the work all of us have been doing in the business. The growth we’re talking about is definitely coming from brokers.”
Brokers have also been an important factor for Bank Australia. Senior relationship manager Fernando Lemos said the bank had been bolstering its support around the third party distribution space. He added that it was not only about diversification of products but also diversification of lenders, and this helped brokers cater for a wider client base.
“I think brokers are really starting to become aware of what we’re about and what we stand for,” Lemos said.
“There’s a marketing edge as well: they can go out there and promote themselves. They’re not just a line to a particular organisation; they can look after certain types of clients.”
Agreeing, McLeod added that the extra regulation, such as the caps on interest-only lending, had also had an effect on the sector.
“We all had to slow down for the caps,” he said. “But when it opened up, the brokers who used four lenders were now using a lot more, so it really gave us a chance because we’re in that larger group. So it’s really opened up the market, because it was so confusing in terms of who was doing what – who’s doing construction, who’s doing interest-only, who’s doing investment – so it’s opened up the market and it gives us a shot at getting the business."
One of two brokers joining the roundtable, David Merison from Vault Plus Mortgage and Finance Consultancy said the demographic of people looking to borrow money wanted choice, rather than relying on those who came straight out of the banks and were simply agents for those lender
“We’ve got to hold ourselves open and come up with some innovative solutions, and that means introducing some lenders they wouldn’t always think of,” he said.
Finsure Finance and Insurance broker Christopher Lee said his primary objective was to put the largest amount of money in his client’s pocket rather than the bank’s pocket, and the mutuals offered a cheaper alternative, as well as a more diverse product range.
Not just that but Lee simply enjoys dealing with the mutuals more.
“We want to make sure we invest across the country in different sectors,” Bettez says. “A lot of people don't think it can be done ... [therefore] we need companies like Avenue Living to show the way.”
Investing for the future
While the investment industry has historically considered doing good and doing well with their portfolios to be at odds, that view is evolving. As Walton noted, academic studies have shown that considering inequality, climate change, and other systemic risks in the investment process can contribute to better return performance.
“Investors are incorporating ESG into their investment decisions and their ongoing stewardship of their investments,” she said. “[They are] realizing that they need to be prepared for and influence the sorts of beta risk that we don't really talk about much in traditional modern portfolio theory and finance.”
While climate change is a top-of-mind topic for today’s investors, it’s not the only risk energy retrofits in real estate can address. In places where cold winters are a reality, like the prairies, future innovation in energy-efficient solutions can prove to be life-changing for residents as well.
“Deep energy retrofits in the residential real estate space can also result in lower operating costs and reduced mobilization expenses,” Bettez said. He also highlighted other potential co-benefits, such as decreased tenant turnover due to the improvement to people’s quality of life, which could translate into the increased value of building assets down the road.
Avenue Living Asset Management, which operates as part of the Avenue Living Group, is a leading Canadian alternative asset manager. With a shelf of four alternative investment products as of 2022, Avenue Living entities own and operate assets throughout Canada and the United States that support sectors essential to the everyday lives of North Americans: workforce housing, commercial real estate, farmland, and self-storage. Through a disciplined, diversified, and analytical approach, Avenue Living executes its investment strategies with an eye toward creating long-term value for investors as well as the communities where it operates.
Find out more
Jason Jogia serves as the chief investment officer of Avenue Living, one of the largest private real estate owners and operators in North America, as well as CEO of the organization's Opportunity Trust. He has over 15 years of experience in real estate capital markets and has originated over $10 billion in real estate loans and $1 billion in equity. Jason earned his master’s of corporate finance from SDA Bocconi in Milan, Italy, and an MBA from the Haskayne School of business, where he also instructs in real estate finance and development. Jason is now pursuing his doctorate in business administration.
chief investment officer, Avenue Living, and chief executive officer, Opportunity Trust
Jason Jogia
Lindsey Walton currently works at the UN’s Principles for Responsible Investment (PRI) as their director of Americas. The PRI aims to bring responsible investors together to work toward sustainable markets that contribute to a more prosperous world for all. Before the PRI, Walton worked to accelerate gender equity in the Canadian finance industry as a director at Women in Capital Markets (WCM). Prior to WCM, Lindsey worked in the capital markets space for over a decade. She got her start in venture capital and has spent the majority of her career with CIBC Capital Markets Risk Management (CMRM) doing trading-floor market risk for a variety of different asset classes. Lindsey is on the board of Nellie’s Women’s Shelter and volunteers in WCM’s professional and student mentorship programs.
director of Americas, signatory relations, Principles for Responsible Investment
Lindsey Walton
Robert Janson brings over 20 years of experience, gained in Canada and internationally, to his role as co-CEO and chief investment officer of Westcourt Capital Corporation. An expert in his field, Robert served as a high-net-worth and ultra-high-net-worth advisor for UBS in Switzerland. Since joining Westcourt as a partner in 2013, he has served as a member of Westcourt’s executive and investment committees; he is currently a registered portfolio manager in four provinces. Robert has also spent time instructing in financial planning for the École Supérieure de Banque et Finance in Switzerland, and in Concordia University’s John Molson Wealth Program.
co-CEO, chief investment officer,
Westcourt Capital
Robert Janson
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In his capacity as managing director, investments with the CIB, Frederic Bettez is responsible for leading the Commercial Building Retrofits Initiative and investments in broadband, and for overseeing the activities of the CIB in Quebec.
Before joining the CIB, Frederic focused on the financing, acquisition, and management of infrastructure and energy projects on sizable projects across Canada.
Frederic has led teams involved in setting up consortiums; negotiating and structuring various design, build, finance, operate, and maintain (DBFOM) projects; developing financial models; and managing the financing of infrastructure and renewable energy projects that generated billions of dollars in financial commitments.
managing director, investments, Canada Infrastructure Bank
Frederic Bettez
All signatories to the UN PRI commit to:
Incorporating ESG issues into investment analysis and decision-making
Active ownership with ESG issues incorporated into ownership, policies and practices
Seeking appropriate disclosure on ESG issues by entities they invest in
Promoting acceptance and implementation of the principles within the investment industry
Working together to enhance their effectiveness in implementing the principles
Reporting on their activities and progress toward implementing the principles
Source: The UN Principles for Responsible Investment website (https://www.unpri.org/about-us/what-are-the-principles-for-responsible-investment)
Source: Canada Infrastructure Bank website (https://cib-bic.ca/en/projects/green-infrastructure/avenue-living-energy-retrofits/)
Unpacking the Avenue Living-CIB partnership
First opportunity to facilitate energy efficiency at scale in the multi-unit residential sector
Fast fact
Alberta and Saskatchewan
Location
Up to $150 million
Participation
Optimize energy performance in more than 6,800 residences
Objective
much in traditional modern portfolio theory and finance.”
While climate change is a top-of-mind topic for today’s investors, it’s not the only risk energy retrofits in real estate can address. In places where cold winters are a reality, like the prairies, future innovation in energy-efficient solutions can prove to be life-changing for residents as well.
“Deep energy retrofits in the residential real estate space can also result in lower operating costs and reduced mobilization expenses,” Bettez said. He also highlighted other potential co-benefits, such as decreased tenant turnover due to the improvement to people’s quality of life, which could translate into the increased value of building assets down the road.
Avenue Living’s partnership with the CIB is still in its early stages, but it is already taking shape as a potential model for the future of residential real estate. Jogia highlights the firm’s successful pilot of energy retrofits two years ago for its buildings, whose build form reflects “the bulk of multi-family as we know it today.”
Avenue Living has also worked with the CIB to finance feasibility studies around energy retrofits, which showed how buildings erected in the twentieth century could be modified into more environmentally friendly and energy-efficient assets that can last another 50 years.
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“[Responsible investing] didn't exist 20 years ago, and it's become more prevalent. It's definitely part of the world of investing, and will be here forever”
Robert Janson,
Westcourt Capital
“Investors … [are] realizing that they need to be prepared for and influence the sorts of beta risk that we don't really talk about much in traditional modern portfolio theory and finance”
Lindsey Walton,
Principles for Responsible Investment
“The bulk of [our existing rental stock] was built in yesteryear [pre-2000]. Environmental impact was not at the forefront of investors’ sentiment or builders’ sentiment,” Jogia explained. “As a result, the [carbon] footprint of those buildings is actually pretty sizable relative to what today's modern build form can emit.”
To maximize the effectiveness of the BRI, the CIB imposes very specific requirements. According to Bettez, the CIB looks for partners who can achieve considerable reductions in GHG emissions, which means a deal ticket size of at least $25 million, while also putting enough capital up front for projects themselves. It also needs partners with the sophistication, the mandate, and the vision to truly create something for the future.
“We wanted to create an investment to transform the way that retrofits are financed,” Bettez said. “Rather than look at it as a pure real estate play, look at it as an energy or ESG investment [in and] of itself so that you can eventually create an asset class that can become investable.”
When Avenue Living approached the CIB to propose a partnership, it was a moment of serendipity. Avenue Living wanted to make capital investments that would help reduce GHG emissions within its multi-family residential assets while extending their useful life. Meanwhile, CIB saw a chance to extend its impact from commercial buildings mostly within larger urban areas to include multi-family residential assets in the prairies. The resulting partnership is CIB’s largest investment in this sector in western Canada to date.
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“[Responsible investing] didn't exist 20 years ago, and it's become more prevalent. It's definitely part of the world of investing, and will be here forever”
Robert Janson, Westcourt Capital
“Investors … [are] realizing that they need to be prepared for and influence the sorts of beta risk that we don't really talk about much in traditional modern portfolio theory and finance”
Lindsey Walton, Principles for Responsible Investment
Avenue Living’s partnership with the CIB is still in its early stages, but it is already taking shape as a potential model for the future of residential real estate. Jogia highlights the firm’s successful pilot of energy retrofits two years ago for its buildings, whose build form reflects “the bulk of multi-family as we know it today.”
Avenue Living has also worked with the CIB to finance feasibility studies around energy retrofits, which showed how buildings erected in the twentieth century could be modified into more environmentally friendly and energy-efficient assets that can last another 50 years.
“There are certain build forms where it just will not allow it from a financial feasibility standpoint under today's technology. That could change as time goes on,” Jogia said. “But it would be our objective to do [retrofits for] a majority of our assets in Canada.”
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