Investment Inventory

BCI-Investment-Inventory-2021-Mortgages

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M O R T G A G E S | I N V E S T M E N T I N V E N T O R Y | A S A T M A R C H 3 1 , 2 0 2 1 5 With $7.0 billion in assets (representing 3.5 per cent of BCI's total assets under management), QuadReal Property Group (QuadReal) has actively managed and serviced our commercial mortgage program since fiscal 2020. As a significant lender to the real estate industry, QuadReal focuses on direct mortgage investments with strong-yielding and attractive risk-return profiles. Their strategy includes new loan origination on resilient property types located in markets with strong fundamentals. The program targets fixed term, construction, and mezzanine borrowers in Canada and the United States. Investments are diversified by loan size, region, and property type with a focus on QuadReal's areas of conviction, which include residential and industrial. QuadReal continues to build on a strong Canadian program, with investments in the United States to provide BCI clients with geographical and borrower diversification. QuadReal's management of the program includes detailed underwriting, credit, and financial analysis of all major tenants, guarantors, and borrowers. Their in-house servicing team oversees all payments, discharges, cash flows, insurance expiries, and borrower property tax payments. Mortgages QuadReal continues to expand and diversify BCI's commercial mortgage program through a variety of products and loan sizes. One emphasis in the strategy is to focus capital deployment in construction and mezzanine mortgages — in both Canada and the United States. Construction mortgages provide financing on commercial and multi-family residential properties such as office, condominium, or seniors housing projects. The loans are typically one to five years in duration and take into account risk factors like structure quality, green building features, and the borrower's financial strength, among others. QuadReal also finances higher-risk mortgages through mezzanine mortgages. These loans focus on the same types of projects as construction mortgages; due to the higher levels of risk associated with mortgages of this nature, additional compensation or security provisions are required. Terms of the loan fall between one to five years and include risk premiums specific to each project. With both mortgage types, QuadReal pursues direct mortgages with best-in-class real estate owners, developers, and partners. EXPANDING BCI'S COMMERCIAL MORTGAGE PROGRAM 5th and Broadway, Nashville, TN, USA

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