Her replacement is expected to be announced in April
Caisse de dépôt et placement du Québec (CDPQ) is set to bring its real estate subsidiaries in-house in order to cut back on costs, as reported in an article by The Globe and Mail. Following this, Nathalie Palladitcheff, Ivanhoé Cambridge’s chief executive officer, will be leaving the firm.
CDPQ has recently integrated Ivanhoé Cambridge and Otéra Capital Inc. into its investment and corporate services teams as part of its plan which is expected to save the fund $100 million annually.
“We want to work as one team – one CDPQ – and build on the unique know-how of our talent to create value for our depositors,” said Charles Emond, CEO of CDPQ.
Palladitcheff stated that Ivanhoé has changed its role to focus on investing from its previous dual mandate to operate properties and invest in real estate.
“Combining our abilities with those of the CDPQ group is the logical next step of this evolution,” said Palladitcheff.
While the integration process expected to take 18 to 24 months, the investment teams in the two real estate subsidiaries will formally join CDPQ in April, which is when Palladitcheff will leave the firm.
“My transformation mandate will conclude at the end of the transition period in which I will be fully engaged,” said Palladitcheff.
Notably, the integration will have the two real estate subsidiaries continue operating under their current brands. CDPQ will also be buying out stakes in the two companies which are held by minority investors in order to become the sole shareholder.
Palladitcheff’s upcoming departure will mark the latest development in the changes seen among executives of Canada’s high profile real estate investors and developers, with many of them being owned by large pension funds.
Notably, Ontario Teachers' Pension Plan (OTPP) had replaced John Sullivan with Sal Iacono last year. Ontario Municipal Employees Retirement System (OMERS) had also hired Daniel Fournier to lead Oxford Properties Group, its real estate arm, as executive chairman. Fournier was also the previous chairman and CEO of Ivanhoé before Palladitcheff.
CDPQ is set to announce a new head of its real estate investment group by the end of the transition in April.
