Investments in the U.S. real estate market are now an integral part of institutional investors’
asset allocation. In this context, the Canadian real estate market currently still represents a
niche for many of these investors. In this segment, too, there are many specialized
“boutiques” with focused know-how. Markus Hill spoke for FONDSBOUTIQUEN.DE with Sven
Matten, RECan Global GmbH, about various aspects of the Canadian real estate market
concerning the real estate report “Real Estate Canada Market Summary 2021 & Outlook
Hill: Why are you so intensively involved with the Canadian real estate market?
Matten: The Canadian real estate market has very positive momentum, is robust and
sustainable and offers comparatively high yields in a stable environment and AAA currency. I
have permanent residency status for Canada, have been professionally active in both
Germany and Canada for many years, and thus have insights into the Canadian market. One
of my activities over the past ten years has been the establishment of an investment fund
focused on Canadian renewable energy, which I now advise. I have also been keeping an eye
on the Canadian real estate market for many years and consider it to be extremely
attractive, especially from a German perspective, in terms of investment and value
development potential. Through my local activities, I have also been able to establish
contacts with many years of experience. This is the basis for RECan Global’s management
team in Canada and Luxembourg. I manage our office in Munich. This combination enables
us to offer everything from a single source at a high level and with extensive experience in a
closely networked team of partners with our asset sourcing and management as well as a
Luxembourg fund structure and German reporting.
Hill: What are the most interesting findings from your study?
Matten: The Canadian real estate market in my view a hidden champion in a safe-haven
country. The numbers in the real estate market report also show that. In my opinion, the
positive influence of the Canadian government’s immigration policy should be highlighted.
More than 400,000 people immigrate to Canada every year, not into the social systems,
however, but mainly into the labor market. Around 65 percent of these immigrants have
entered through special labor market programs. This means they have jobs, and they earn
money from day one. Even in times of pandemic, this drives both the Canadian commercial
and residential real estate markets. Gross domestic product is expected to grow 4% in 2022,
up from 4.5% in 2021. Despite the pandemic, the employment rate rose by 123,000 (+0.8%)
in December alone. The unemployment rate fell to 5.9% in December 2021, the lowest level since the pandemic began in March 2020. Full-time employment in Canada is 234,000
(+1.6%) higher than in February 2020. The consumer price index (CPI) is up 4.8% in 2021. The
Bank of Canada projects inflation to fall back into the 3% range in 2022 and to return to the
targeted 2.0% in 2023.
Hill: Where do you see similarities in investors looking to the U.S. and Canadian real estate
Matten: Well, it takes sustainable global thinking as well as a diversified portfolio to invest in
“more distant” markets and currencies – to point out one commonality. And of course,
investors are united by the search for lucrative, ESG-compliant investments that deliver
necessary returns at the end of the day with low risk. At this point, let me turn again directly
to Canada. The country is extremely stable politically, the Canadian dollar has a AAA rating, it
is a robust and organically growing market with record investments in residential and
industrial real estate, and it promises investors attractive returns with comparatively low-
risk potential, especially from a German perspective.
Hill: What do you deal with when real estate markets are not on your agenda?
Matten: Well, there are many things if I had more time. Film projects are particularly close to
my heart. I founded Paradigma Entertainment in 1999. The company focuses on the
production of high-quality independent diverse feature films for an international audience.
In addition to developing its projects, the company and its partners specialized in film
financing, with a focus on private equity and venture capital. In addition to the German-
speaking region, activities focused on productions in Canada together with Canadian
partners. In this respect, the circle between Germany and Canada closes again.
Hill: Thank you very much for the interview.
Sven J. Matten is the co-founder and driving force behind RECan Global. As Managing
Director, he acts as a link between the team and RECan’s partners in the EU and Canada. In
addition to his leadership roles at RECan, he focuses on investor relations, strategy, and
business development. Sven has more than 20 years of experience connecting EU-based
investors with investment opportunities in Canada, along with good knowledge of the
investment process between the EU and Canada. As a German citizen with permanent
resident status in Canada, Sven moves freely between both countries.
RECan real estate market study Canada: RECan Global – RECan Conference – Real Estate Canada Market Summary 2021 & Outlook 2022
RECan Global: www.recanglobal.com
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