Strategy

Our vision

Develop and manage a property portfolio of seniors’ residences in Quebec in order to consolidate a market with significant growth potential.

Ambitious growth targets

Acquisition and construction of new residences in urban markets (including the purchase of land)

90

Ultimately, the Fund will own around thirty residences to comprise about 8,000 urban rental units and around 1,200 secondary-market rental units.

The Fund, which has an 8-year limited duration, has already made 7 acquisitions in 2019. The management team plans to build 3 to 4 residences per year in the urban and secondary markets over the next 7 years.

Acquisition and extension of residences currently in operation in secondary markets

10

Quebec is faced with significant population aging

For the first time, people 65 and over are expected to
outnumber people under 19 in Quebec by 2031. The share of people 65 and over will rise from 18% in 2018 to about 25% in 2031, creating a generational imbalance.
This increase will be reflected across all regions of Quebec.

This is becoming a concern for the Quebec government

Between 2014 and 2022-2023, Québec Economic Plan investments will total $46 billion to support Quebec’s economy. Limiting the effects of population aging is one of the main challenges facing the government.

A refundable tax credit allowance has been introduced to increase assistance to low-income seniors aged 70 or over starting in 2018.

This new refundable tax credit may be up to $200 for a single senior or $400 for a senior couple.

A number of services related to living in a senior’s residence are also subject to significant tax credits.

Relative share of age groups – Quebec
As a %; 1986–2031p

Population aging is accelerating and creates specific needs for a portion of the population, which will have a positive impact on demand for seniors’ residences and services.

Overall, the demographic outlook is very favourable for PSR market growth

Quebecers are getting older… but live longer!

The average age of Quebecers will rise from 40.9 years in 2011 to 44.4 in 2031

Thanks to advances in medicine and an improved quality of life across the population, life expectancy for Quebecers in 2017 stood at 80.6 years for men and 84.5 years for women

According to the ISQ, average life expectancy in 2061 will reach 90.3 years for men and 92.5 years for women

Residence capture rate stable in Quebec (18%)

The capture rate, which is the share of Quebecers aged 75 and over living in a residence, is stable at 18%.

While it is difficult to predict upward or downward trends in the capture rate, baby boomers’ large population share will drive higher demand for seniors’ residences.

Growing life expectancy drives demand for services and larger housing, particularly for couples. People will stay longer in their PSR.

Quebec PSR market trends

In 2018, there were 10,000 more PSR rental units than in 2014. Within 10 years, an additional 83,000 rental units will be required.

Number of PSR rental units in Quebec 2014–2018
Number of units(*)

In 2018, there were 118,682 PSR rental units available in Quebec, up 10,000 or 9% from 2014.
This growth in demand is likely to continue: in 2018 there were 695,955 people 75 and over, for a ratio of 5.8 seniors per rental unit.
To maintain this ratio, an extra 83,000 rental units would be required in 2031.

The objective of the Champlain SH Real Estate Fund is to own around 9,550 rental units in 2026, including the construction of some 7,250 new units, or about 10% of anticipated demand

Fonds Champlain RPA