Strategic Group concludes restructuring, significantly reduces office sector exposure
March 2, 2022 (Calgary, AB) – Strategic Group has successfully concluded its restructuring program that began two years ago. The company reduced its debt by $1.02 billion and dramatically reduced its exposure to Alberta’s unstable office real estate market by 92%. Strategic Group is well-positioned to manage Canada’s evolving economic climate.
The court-supervised restructuring process was a key step in a strategic pivot for the company that included divesting 110 office and retail properties.
“Our company is optimized for our current markets,” said CEO Riaz Mamdani. “Through careful restructuring and the current composition of our real estate portfolio, our cash flow has significantly improved and will continue to improve.”
The company’s real estate portfolio is now 86% residential, 9% office, and 5% retail. This is the culmination of a long-term strategy to focus the company on residential real estate. Over the past seven years, Strategic Group has pursued a business plan to grow its multi-family portfolio while decreasing its exposure to Alberta’s office market. This included pursuing new residential developments, repurposing existing office buildings, assertively deploying pension fund capital, and the disposition of select assets.
“We worked with all of our stakeholders including suppliers, lenders, and employees,” said Mr. Mamdani. “Every one of our lender partners was offered a strategy to achieve full recovery of their debt over the course of this restructuring.”
“This is a promise we made two years ago, and I am glad we have kept it.”
Today, Strategic Group owns residential, retail, and office properties across Canada, and it is actively developing and repurposing a number of other properties. As a real estate company, it is focused on value creation and asset management with a continuing mantra of “creating what others can’t by seeing what others don’t.”